INTERNATIONAL REVIEW ON CASH MANAGEMENT · BILLETARIA no. 9 April 2011 3 Surga León España...

I N T E R N A T I O N A L R E V I E W O N C A S H M A N A G E M E N T

YEAR V ISSUE 9 APRIL 2011

Opinion2 Editorial

3 Interview with Leopold Surga

6 Hybrid substrates: the future is nowThe advantages of cotton and polymer in a single product

Clemens Berger. Louisenthal

9 Some observations on technological developments in durable substratesCombining anti-soiling and varnishing treatments

Timothy Crane. Crane Currency

10 Durasafe®: the contribution from LandqartPaper types that are slowing the adoption of polymer for banknote production

Andrew Bonnell. Landqart AG

12 FabrianoDnA: Durable, natural and AuthenticAn anti-soiling solution that extends banknote lifetimes

Sergio Antoci. Fedrigoni SpA

13 Long-life substratesProtection against invisible banknote soiling

Pierre Doublet. Arjowiggins Security

14 Extending banknote lifetimeAlternative substrates to paper for low-denomination banknotes

Bridget Taxy. De La Rue Currency

16 Developing improved banknote substratesDurable paper types to extend banknote lifetime

Antonio Olmos. Fábrica Nacional de Moneda y Timbre-Real Casa de la Moneda

Banknotes and coins18 Mexican banknotes

Manuel Galán. Banco de México

20 The Banco Central de Bolivia’s Treasury SubdirectorateWalter Orellana and Abel Sanjines. Banco Central de Bolivia

Cash Activities and Technology22 The Eurosystem’s efforts in the search for a longer lasting banknote

External circulation tests with banknotes in Europe

Torsten Meuer and Jérôme Martin. European Central Bank

25 Varnishing solutions for a long-lasting banknoteAnalysis of banknote varnishing options

Fernando León and Andreas Walter. Banco de España and Deutsche Bundesbank

28 Analysis of substrates by the Banco de MéxicoA battery of tests on substrates to assess their durability

Enrique Guamer. Banco de México

30 The Bank of Thailand’s experience with high durability banknotesDurable banknotes and cost reductions

Sopee Sa-nguandekul. Bank of Thailand

32 Tests on long-life paperThe results of laboratory tests on substrate parameters.

Ana María González and Diego Schweckandt. Banco Central de la República Argentina

CIGE33 8th International Course on Cash Management

Miscellaneous33 Periodical publications on cash

36 Central banking news

37 Events

38 Security features integrated in banknote paper

BILLETARIA-INGLES_9-V8_Maquetación 1 18/05/11 11:53 Página 1

EditorialJ. Darío Negueruela Banco de España

Editorial

Opinion

CONTRIBUTORS

J. Darío Negueruela Director of the Cash and Issue Department. Banco de España / Fernando León Head of the International Cash Unit. Banco deEspaña / Leopold Surga Former sub-director of the Cash and Payments System Department. Czech National Bank / Clemens Berger Group VicePresident. Louisenthal / Andrew Bonnell Product manager for Durasafe®. Landqart AG / Sergio Antoci Manager of the Security Products Division.Fedrigoni SpA / Timothy Crane R&D and Technology Manager. Crane Currency / Pierre Doublet R&D Manager. Arjowiggins Security / Bridget TaxyDirector of Strategic Marketing. De La Rue Currency / Antonio Olmos Paper Mill Director. Fábrica Nacional de Moneda y Timbre-Real Casa de laMoneda / Manuel Galán Director for Issuance. Banco de México / Walter Orellana Monetary Operations Manager. Banco Central de Bolivia / AbelSanjines Treasury Sub-Manager. Banco Central de Bolivia / Torsten Meuer Head of R&D Section. European Central Bank / Jerôme Martin Expert inthe R&D Section. European Central Bank / Enrique Guarner Manager of the Banknote Printing Works. Banco de México / Andreas Walter Banknotedevelopment and production engineer. Deutsche Bundesbank / Sopee Sa-nguandekul Head of the Origination and Research and DevelopmentDivision. Bank of Thailand / Ana María González Deputy Laboratory Manager. Banco Central de la República Argentina / Diego SchweckandtLaboratory Technician. Banco Central de la República Argentina / Yolanda Barrera Photographer.

2 BILLETARIA no. 9 April 2011

lower prices, apart from the obvious concerns with hygiene, healthand the environment.

The first part of this issue, following the interview with LeopoldSurga, an old friend known to everyone in the banknote world, andfor whose contribution we express our sincerest thanks, is devotedto presenting the new products some leading paper manufacturersare currently offering. Obviously, we cannot include them all but webelieve the sample is sufficiently representative of the scale of theindustry’s reaction and the ever expanding range of options avail-able to anyone looking for a new type of paper as an alternative topolymer. The second part, after the customary section presentingLatin American banknotes and central bank cash departments,offers a series of reports and analyses by experts at various centralbanks on products that they have previously presented or on com-mon aspects of the general issue of banknote substrates. Thesepresentations, therefore, aim to complement or counterpoint theinformation offered in the first section of the journal.

Given the issue’s specific focus, our usual section on security fea-tures has been modified slightly in this instance to focus on thosethat are specific to the paper substrate.

Finally, the journal’s editorial team has made a brief but interestingreview of a number of publications on cash and a summary isgiven in an box which we hope may be of use to our readers. Asalways, we have not aimed to be exhaustive or to go into analysis

Autumn colours? / JDN

of matters beyond our scope.Our aim is simply to highlightthe fact that there is a growingnumber of journals on the topicwhich is something we inter-pret as a positive sign.

On 11 March 2011, while thefirst proofs of this issue ofBILLETARIA were at the printers,news arrived of the earthquakethat devastated a large area ofJapan leaving countless victimsand huge material damage in itswake. Our thoughts and feelingsof support and solidarity go outto all those affected by this terri-ble tragedy, to whom we sendour sincerest condolences.

ed to the challenge of poly-mer and the new substratesnow on the market showthey have clearly perceivedthe need to offer alternativesthat meet today’s demands.More active communicationbetween customers, man-agement in a globally con-nected world, advances intechnology and the pressureof cost control to whichissuers are today subject, allcall for new and better bank-note substrates. CentralBanks’ typically conservativeattitude has given way to aconstant search for betterfeatures, more strength and

This issue of BILLETARIA is dedicated almost exclusively toexamining and giving an overview of the modern substrates thepaper industry is offering banknote manufacturers and printerstoday. Issue 5 of BILLETARIA in April 2009 focused on the useof polymer, a significant new development in the banknoteindustry which radically changed the landscape by introducing apowerful alternative to paper as the substrate on which to printbanknotes. Polymer initially seemed an expensive option, but itoffered some genuinely attractive features and the future prom-ised to be interesting. The proof that this alternative’s benefitswere more than just a sales pitch is that today, in mid-2011,there are over nineteen countries issuing banknotes printed onpolymer, with the number of polymer banknotes in circulationpossibly exceeding five billion units.

We have said more than once that, in our opinion, one of theaspects for which we should be grateful to the firms that intro-duced polymer is not just that they have offered an alternative, butthat they have stirred up the otherwise calm waters of the bank-note industry. The fact is that paper manufacturers have respond-


BILLETARIA no. 9 April 2011 3

Interview with Leopold SurgaFernando León Banco de España

Leopold Surga was born in1947. He graduated fromthe Law faculty of theCharles University in Praguein June 1970 and in Augustof that same year startedworking at the NationalBank of Czechoslovakia asan expert on currency coun-terfeiting in the Accountsand Cash Department. In1992 he was appointed asExecutive Director of theCash Department, where hisfirst major task was runningthe introduction of theCzech Republic’s new cur-rency and exchanging theexisting Czechoslovak banknotes and coins in circulation. In 1996he was appointed as the Czech Republic’s Central Bank’s repre-sentative on the Statistics and Banknote Handling Committee ofthe Banknote Printers Conference and in 1999 he joined the Cen-tral Bank Counterfeit Deterrence Group (CBCDG). In 2001, followinga reorganisation at the bank, he was appointed as Executive DeputyDirector of the Cash and Payment Systems Department. Since 2003he has been Czech National Bank’s representative on the Bank-notes Committee of the European System of Central Banks, and onthe Euro Counterfeiting Experts Group, the Euro Coin Sub-Com-mittee (ECSC) and the Mint Directors’ Working Group (MDWG).Between 1992 and 2010 he was Chairman of the panel undertak-ing a study on new Czech banknotes and coins. He retired in Feb-ruary 2010.

I have been involved in cash mat-ters throughout my career. Myfirst job was in the Accounts andCash Department, where I wasresponsible for a variety of tasks.First of all, I worked at a branchof the Central Bank in Prague. Ifound learning about cash oper-ations hands-on to be useful andthe experience I acquired wasvery valuable to me later on whenI was in charge of drawing upinternal rules and standards, cen-tral bank regulations and draftbills submitted to Parliament. Forexample, part four of the Lawestablishing the Central Bank’sFunctions and Standards of

Operation is devoted to regulating banknote and coin circulation. It wasdrafted by our department and summarises all my experience and that ofmy colleagues. I also worked as an expert in the counterfeiting area, whichwas useful experience when I had to contribute to preparing legislation onthe subject, which was included in the former Czech penal code.

Q. Let’s talk about banknote manufacturing and procurement. Whatis the Czech National Bank’s model of banknote procurement? Whatis your personal point of view on the banknote procurement system?

A. Article 2 of the Law defines the Czech National Bank’s functions andstandards of operation and establishes that, in accordance with its prin-cipal objectives, among other tasks, the Central Bank will issue bank-notes and coins, manage the circulation of the currency, and promoteefficient and smooth operations. The Czech mint and state printing worksin Prague are independent bodies that do not belong to the Bank. Beingsubject to national legislation, the Bank is obliged to act according to thelaws governing competitive open bidding and obtains coins by means of

Interview with Leopold Surga

Opinion

When he retired, Leopold Surga had held responsibilities in the banknotesand cash management area for forty years. I first met Leopold Surga in1996 in the Statistic and Banknote Handling Committee of theBanknote Printers Conference, when he took part as the repre-sentative of the Czech National Bank, and I was immediatelystruck by his warm personality, his unhurried and cordial tone,strong sense of responsibility and his experience when talkingabout cash-related issues. During our interview, Leopold dealswith almost all aspects of the topic of banknotes and cash man-agement.

Q. You worked for Óeská národní banka, the Central Bank ofthe Czech Republic, for a long period of time. How much ofthis time did you spend in the Cash Department?

A. I started working at what was then the Central Bank ofCzechoslovakia in July 1970, as soon as I had obtained mydegree from the Law faculty of the Charles University in Prague.The Czech National Bank came into existence on 1 January1993, after the partition of the former Czechoslovakia in twoindependent states, the Czech Republic and Slovakia, whichled to the partition of the common Central Bank into two cen-tral banks: the Czech National Bank and the National Bank ofSlovakia. Picture of Praga

L. Surga F. León



authenticity and fitness checking and recirculation of euro banknotes. Theseare regulations the Bank will be obliged to comply with and its short andmedium term plans include the implementation of individual measures toachieve this goal. As regards legislation, for example, a completely newregulation concerning circulation of banknotes and coins has been passedby Parliament following consultation with the ECB.

There is also an important plan for the management and circulation of cash,with a view to the Central Bank being strong enough to directly influencethe market. The aim is to penetrate the market and increase its influenceon the flows of banknotes and coins in circulation. From an operationalstandpoint, the Bank has successfully run a pilot banknote sorting test ina multi-denominational system at one of its branches which is consideredto be a high-quality service offered to credit institutions and customers. Wethink this could be a powerful instrument from various points of view:strengthening the position of the Bank, improving the quality of circulatingbanknotes, prudential behaviour, etc.

Q. Should a central bank provide cash services to the public or shouldits activity concentrate on professional cash handlers?

A. The Czech National Bank offers only a limited number of services to thepublic. Its branches exchange mutilated banknotes and coins, give changefor Czech banknotes and coins and exchange currency which has ceasedto be legal tender. These services are provided free of charge. As the issuerof the banknotes and coins in circulation, the Bank must provide theseservices or guarantee that they are provided by third parties. Generally, thecustomers of the cash area are credit institutions and bodies funded outof the State budget. Going forward there are plans to offer cash servicesto supermarket chains. Unlike some other central banks, the Czech Nation-al Bank does not exchange foreign currency for the public or provide anyfinancial products to private individuals.

Q. Do you think that outsourcing is the key to efficiency in cash man-agement?

A. Let me ask you a couple of questions back: what does efficiency meanin relation to cash management? Does anyone know how much putting athousand banknotes into circulation costs, to use it as the reference whendeciding whether a central bank is either modern and efficient or, on theother hand, obsolete and inefficient? Every central bank needs to be awareof its strengths and weaknesses. I am very sceptical about outsourcing anyof a central bank’s essential tasks which have been assigned to it by law.A central bank has to control all the activities relating to currency circula-tion. The central bank must retain control over the quality of the banknotesput into circulation and supervise and check up on any institutions whichprovide these services on its behalf. The central bank must also be pru-dent and not rely on the capabilities of third parties.

This situation differs from country to country according to size, legislation,the number of credit institutions, and the number of cash-in-transit com-panies, etc. not to mention traditions. First of all, it is necessary to take alook at the quality of the banknotes and coins in circulation, the fluidity of cir-culation, the volume of unprocessed banknotes and coins, lodgement andpayment figures, etc. It is possible to compare the number of banknotesput into and withdrawn from circulation, the number of employees involvedin cash operations, operating costs, overheads, etc., but these figuresinclude many different payments, compensations and reimbursement tothe organisations to which these tasks have been entrusted.

Q. Which are the pros and cons of issuing high denomination bank-notes? What advice would you give to counterparts at other centralbanks on this issue?

A. When we prepared our new series of banknotes in 1991 and 1992 wehad to argue for the inclusion of a CZK 5,000 banknote (approximately€200). People said it was too high a denomination, too expensive and would


Opinion

a tender process. Procurement of banknotes is not subject to tender dueto an exemption granted in view of the need to protect banknote securityfeatures.

Production by both the mint and the printing works is of very high qualityand, in the case of coins, the Czech mint offers the lowest prices. Our dis-cussions with counterparts at various other central banks have made itclear to us that the price we pay for our banknotes is also very competitiveand we have no grounds to change supplier. The Cash Department alsokeeps in contact directly with the suppliers of the mint and banknote print-ing works and has signed three-way agreements specifying in detail thequality of the materials used (blanks, paper, inks, etc). I favour quality andmy personal opinion is that quality and prices must be given the sameimportance in the decision-making process.

The Czech National Bank verifies the quality of deliveries from manufactur-ers in minute detail. The Cash Department has kept strategic reserves atlevels which make it possible to reject manufacturing defects without risk-ing emergencies or crises. We soon learned that a penalty clause in a con-tract, even when it imposes significant economic penalties for defectivebatches, is useless if the vaults are empty and there are only a few bank-notes and coins that can be put into circulation.

Q. Has the Czech Republic designed a strategic plan of action for itsresponsibility in the cash cycle? Has it defined basic principles or lim-its regarding the management of banknotes and coins?

A. Despite the problems of the public finances and the government’s budgetdeficit, the Bank’s long-term goal remains unchanged: membership of theeuro. The basic principles of cash circulation are established by Europeanlegislation. For example, Council Regulations (CE) numbers 1338/2001 and44/2008 and ECB documents such as that establishing the principles andobjectives of the Eurosystem in the cash cycle and the Decision on the



Opinion


facilitate black-market transactions, etc. However, on various occasions,we have had grounds to feel pleased with having issued this denomination.In the new economic conditions, under capitalism, companies are worriedabout their partners’ insolvency or bankruptcy and, therefore, prefer cashpayments to those using alternative payment instruments. Ten years ago,when one of our most important banks failed, the public withdrew aroundCZK 20 billion in cash in the space of just a few days. The same situationoccurred in October and November 2008, when the banking crisis reachedEurope, but involving twice the amount. The CZK 5,000 note representsapproximately 32% of the value of circulating banknotes and 7% in termsof volume. This banknote’s value is equivalent to almost 20% of the aver-age salary, which seems reasonable

Q. Do you think that the relationship between these, the central bank,credit institutions and cash-in-transit firms, is an essential factor incurrency management?

A. These relationships must be solid and constant, as this will help suc-cessfully resolve problems quickly. It is also important that the central bank,given that it is responsible for currency circulation, keeps tight control overthese companies as they are agents that play an important role in the mar-ket and are capable of altering currency flows, as well as the quality of thebanknotes and coins in circulation.

Q. What do you feel is the main threat to coins?

A. No credit institution likes handling coins. They have to be counted,checked for authenticity and exchanged if they are damaged or unfit foruse in vending machines. Medium-to-low denomination coins are gener-ally unpopular because they have very little value and nobody wants toreceive them in their change. They are only popular with the people whorun the mint, as producing them is a never-ending story. The public hoardsthem at home rather than deposit them in the bank. Credit institutions,therefore, demand ever more coins for their customers. The result is anincrease in the production of this type of coin which, moreover, cost moreto mint than they are worth.

Q. What can you say about the fight against counterfeiting?

A. Well trained staff in credit institutions branches and bureaux de change,good legislation, effective cooperation between central banks, police andcompetent national authorities at state and international level, concentrat-ed information at national analysis centres, etc.

Thank you, Leopold we have to end our interesting discussion there.Thank you for kindly agreeing to talk to BILLETARIA and sharing someof your extensive knowledge of the currency world with our readers.

A day at the seaside / JDN



Hybrid substrates: the future is now

Opinion

This article reports on hybrid substrates,one of the most significant new productsto have emerged recently in the sub-strates field. HybridTM, Louisenthal’scontribution to this area, is a productcombining the intrinsic advantages ofcotton and polymer in a single product.HybridTM is a proven technology, withbanknotes in circulation in three coun-tries in Africa for the last two years. In acompetitive market, hybrid substratesare now a fully commercially availableproduct and are setting the trend as areal market alternative.


Clemens Berger Louisenthal

What are central banks looking for?

Central banks are interested in obtaining a banknote substrate that meetsa range of requirements:

■ Improving the soiling resistance offered by cotton paper banknotes.

■ Improving the ink retention of polymer banknotes.

■ Retaining the option of embedding security features in the substrate.

■ Continuing to offer the confidence given by the touch and feel of cotton-paper banknotes.

■ Preventing a monopoly of substrate supply or restrictions deriving frompatent rights.

Specifications of HybridTM

HybridTM is a combination of a cotton fibre core with a protective film layeron either side. The core can be adapted to each denomination to include allthe required security features, such as watermarks, security threads, trans-parent windows and machine readable features. The 72 g/m2 cotton fibrecore remains of sufficient thickness to incorporate both visible and con-cealed security features in the substrate, thus ensuring the banknote is pro-tected against counterfeiting.

The cotton-fibre core enables deep intaglio embossing and, thanks to thepolyester film enclosing and protecting it, a long-lasting banknote is obtained Detailed representation of HybridTM / Louisenthal

which remains clean and stiff even under extreme conditions of circulation.The soft polyester surface enables fine line sharpness to be obtained fromprinted elements. Moreover, the specific adhesive ink layer increases bank-note quality during its lifetime which, in combination with intaglio printing,produces the familiar touch and feel of paper.

The HybridTM production process

■ A cylindrical mould process is used to produce the cotton-fibre core.

■ The watermark, security threads and machine-readable security elementsare embedded in the substrate during sheet production. The core resem-bles that of cotton-paper banknotes.

■ The FilgramTM window or transparent window incorporated in the cottoncore is cut by laser.

■ The core is laminated with a protective polyester film on both sides usingsuitable adhesive substances so that the security features are sealedinside. The substrate resembles plastic.

■ The layer of adhesive link which is applied to each side of the polyester filmfacilitates the use of printing inks. The substrate resembles paper again.




Opinion

■ Security inks and holographic strips are applied before finishing and ship-ment to the banknote printing works. The substrate has an identical touchand feel to that of a banknote produced from cotton paper after intaglioprinting.

HybridTM embedded security features

The substrate is designed to incorporate three categories of security fea-ture embedded in its core:

■ Level 1 security features, which are easily verified by the public, such aswatermarks, security threads, or Filgram windows.

■ Transparent or self-verifiable windows or windows incorporating micro-optical elements.

■ Level 2 and 3 security features, verifiable by sorting machines at bothfinancial institutions and central banks.

Graph 1. Durability of banknotes manufactured from HybridTMcompared with cotton-paper banknotes

Banknote evaluation = 25% stiffness + 25% suppleness + 50% soiling

0

1

2

3

4

0 1 2 3 4 5 6 7 8 9 10

Average circulation lifetime (months)

Paper HybridTM

Eva

luat

ion

Una

ccep

tabl

eP

oor

Acc

epta

ble

New

are of unacceptable quality after seven and a half months (see Graph 1).HybridTM therefore showed itself to be at least three times as durable asbanknotes made from cotton paper.

Public acceptance

The familiar touch and feel of HybridTM is considered by the public as adeterrent feature preventing the acceptance of counterfeits and centralbanks did not require any special training to be organised when the newsubstrate was put into circulation. HybridTM can be used for a denomin-ation that is part of a series, as its similarity to cotton-fibre papers meansminimal adaptation of design, printing and sorting is required.

Banknote printing and automated processing

The similarities between HybridTM substrate banknotes and cotton-paperbanknotes make the adaptations necessary for the design and printing ofHybridTM banknotes minimal. Only minor adjustments to the ink are requiredin the drying process when intaglio and offset inks are used in combinationto print on polymer.

This substrate has shown itself to have similar characteristics to cottonpaper when handled by automated equipment. Tests performed on BPSM7 sorting systems have demonstrated that no difficulties arise in high-speed automated sorting. The loss of stiffness typical of lower denomin-ation, which can be an obstacle automated processing, is resolved by theextra stiffness given by HybridTM. It is also suitable for the online shredding

each denomination and can be verified by sorting machines at financialinstitutions.

■ M-feature, a specific level 3 element for central bank verification, pro-viding the level of security currently needed at any stage in the cash cyclein order to maintain public trust in cash.

Quality throughout the banknote’s lifetime

The Giesecke & Devrient banknote analysis method has been used to evalu-ate cotton paper banknotes and those manufactured with HybridTM takenfrom circulation in an African country at 10 month intervals. HybridTM bank-notes still look new three times longer than their cotton-paper equivalentsand remained in the acceptable range of the scale throughout the wholeevaluation period. Banknotes manufactured with cotton paper fall into thelow quality category practically three months after going into circulation and

■ The fact that HybridTM’s materials and productionprocess are not commercially available safeguard itssecurity.

Level of development of banknote security solutions

In order to tackle high-quality banknote counterfeits, it isessential to include sophisticated level 1, 2 and 3 securityfeatures. A banknote manufactured with HybridTMincludes:

■ PixelTM technology watermark, the security feature mostfrequently checked by the public.

■ A security thread with the next generation of Multi-codeTM, which includes specific magnetic coding for



Opinion


ASTTM-treated paper. The result is a durable banknotewhich benefits from a core of durable fibres, a polymerresin infusion during the paper manufacturing process,transformation during the intaglio printing process and,finally, post-varnishing. This concept is valid for alldenominations in a banknote series, although it is usu-ally most appropriate for low denominations, whichrarely return to the central bank.

The cost is relatively moderate in comparison with theextension of banknote lifetime by around 30%. A licenceis only required for use of ASTTM, which ensures papermanufacturers are able to freely implement theEndurance concept.

Perhaps the biggest advantage of Crane Currency’sapproach is the utilisation of the industry’s installedequipment base. No new machines or processes arerequired. What is required however, are systems basedon processes looking at the banknote from the fibres,through the paper up to the finished banknote. CraneCurrency has developed its durable banknote solutionfor its customers and the market in general with twounderlying principles: improving the substrate formula-tion and maintaining existing manufacturing processes.

Original banknote and after a circulation trial (left). Original banknote with Endurance paper and the same banknote after a circu-lation trial (right) / Crane Currency

(continued from page 9)

and briquetting commonly used to deal with cotton paper banknotes at theend of their lifetime.

The economics of hybrid for a medium-sized country

When HybridTM is used, the volume of banknotes that need to be manu-factured annually is significantly lower than is the case with cotton paper,given that HybridTM banknotes retain their durability and quality in circulationmuch longer. Whatever the substrate, production requirements in the firstyear of introduction of a new banknote are significant. The annual per-centage replacement rate of unfit banknotes will increase over time. Print-ing requirements for banknotes manufactured with HybridTM will be lowerthan in the case of banknotes with cotton paper because their substitutionrate is lower due to the increased durability of the substrate and their longeraverage lifetime in circulation.

The greater durability of HybridTM means that, over a ten-year period, thetotal cost of banknotes using this substrate is significantly lower than in the

case of cotton paper banknotes. The total cumulative costsavings from adopting the new substrate are given by thedifference in the 10th year between the cost of banknotesmanufactured with HybridTM and those manufactured withpaper. The comparison shows the adoption of HybridTMis to be cost-effective from year two (see Graph 2).

Competitive offering

HybridTM is patent-free. Therefore, other suppliers candevelop similar products and contribute to establishing astandard hybrid-substrate industry. The leading suppliersin the substrate sector are now introducing their ownhybrid substrates on the market. This will enable centralbanks to benefit both from hybrid technology and a com-petitive range to obtain better prices than would beobtained in an industry with a single supplier. Louisen-

thal’s production capacity of the completely finalised HybridTM product is3,000 tonnes a year.

Concluding remarks

Central banks have the option of choosing a new cotton-based substratewhich combines the advantage of cotton paper with those of polymer.Banknotes manufactured with HybridTM have shown themselves to per-form well under real-life circulation conditions in many countries and canbe supplied competitively by leading suppliers in the substrates industry.Banknotes manufactured with hybrid support the incorporation of securityelements using the latest technology on three levels of authentication, guar-anteeing banknote protection against counterfeiting. Moreover, these bank-notes have similar durability to those manufactured from polymer. Bank-notes produced with HybridTM maintain the tactile qualities of those manu-factured exclusively with cotton-based paper, which inspires public confi-dence. Hybrids have ceased to be a product of the future and now formpart of the line up of substrates in their own right.

0

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1 2 3 4 5 6 7 8 9 10Year

Paper HybridTM

Milli

ons

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uros

Graph 2. Total cost of banknotes

Some observations on technological developments in durable substrates


Some observations on technological developments in durable substrates

Opinion


The concept of durable paper

Durable paper has recently managed to make the market’s perception thatonly paper will do a thing of the past. Today, the range available includesmultilayer plastic-paper-plastic substrates, extruded paper-polymer-paperlaminate substrates, substrates with reinforced synthetic fibre structures,and varnished papers. The market is fragmented, customers are confusedand several of these substrates have virtually insignificant levels of marketpenetration. This mix of products includes more durable substrates, butthey do not sell, basically because a durable substrate is difficult to definein an objective and technical way that is able to stimulate competition andexclude low performance variants.

Paper and polymer

Crane has a long tradition of manufacturing durable paper. As the manu-facturer of paper for US banknotes, together with the more recent devel-opment of the ASTTM paper family (anti-soiling treatment), the firm producesmore durable paper than any other manufacturer. Moreover, recently thefoundations have been laid for a new concept of durable paper for bank-notes called EnduranceTM which consists of the application of anti-soilingtreatment to the paper followed by varnishing of the printed banknotes(ASTTM plus post-printing varnishing). Crane is not averse to using exoticsolutions and has tried a number of them. However, we believe that adurable substrate core made of natural fibres mixed with a polymer satu-ration is the best way of combining paper and polymer. This approachallows sufficiently well-tested security features to be included and it repre-sents a pragmatic solution to the problem of producing a longer-lastingsecure banknote which performs well in circulation. The output of ASTTMpapers accounts for almost half the paper manufactured by Crane at itsTumba mill (Sweden) over the last four years.

Effect of intaglio printing

ASTTM functions differentially from paper to which traditional varnishes areapplied as it is able to exploit the transformative advantages of the intaglio

Some observations on technologicaldevelopments in durable substrates

Timothy Crane Crane Currency

Ten years ago there was just paper andpolymer. Over the last decade papermanufacturers have developed a widerange of durable substrates, however.Today, the most commercially success-ful durable substrates are relatively con-ventional papers coated with a soilingresistant layer. More or less in parallel,post-printing banknote varnishing hasemerged as a solution enabling the dur-ability of all types of substrates to beenhanced.

printing process. The pressure applied during intaglio printing forces theink into the pore structure of the paper and simultaneously seals the papersurface, reducing its porosity and improving its soiling resistance, even in thecase of most ordinary paper types. With the ASTTM polymer embeddedinside the fibre matrix during the paper manufacturing process, the effect ofintaglio printing is multiplied. The fibre matrix becomes less porous as aresult of its increased density and the flow of polymer within it. This is total-ly different from what happens with varnished paper, where the resin andother components of the varnish are deposited on paper surface.

The Endurance concept

Endurance leverages the presence of banknote varnishing equipment atprinting works around the world. Substrates based on polymer materialsalso need to be varnished after the printing process. The absence of thisvarnish layer would mean that banknotes lose their ink and coatings. Whena banknote made from durable paper substrate is compared with one pro-duced using polymer, what should paper manufacturers devise other thanvarnish as part of the solution?

A specific chemical affinity between the ASTTM polymer and various var-nishes was developed for Endurance. Post-varnishing banknotes after print-ing means that the ink and security elements are encapsulated within aprotective shield formed by the outer varnish layer and the underlying

Structure of Endurance / Crane Currency

The Endurance banknote is engineered from the four interconnect-ed banknote security and durability elements:

• Mechanical strength of the durable fibre core.• Anti-soil treatment (ASTTM), which saturates and coats the fibre

surface• Intaglio printing, sealing the surface and driving the ink into the

fibre layer• Protective varnishing, post-printing, that bonds to both the ink

and the saturated fibre surface

(continued on page 8)



Durasafe®: the contribution from Landqart

pendent shapes. The final substrate, with a 35 g/m2 polymer core and two35 g/m2 cotton paper layers, combines the advantages of the two mater-ials optimally.

The material and processes also offer further unexpected advantages. Theunique polyamide used as the core of the polymer substrate has excep-tional moisture-retaining properties, and the paper has properties that allowthe substrate to adapt well to one and two-sided intaglio printing. Finally,as a waste material, the polymer has similar characteristics to paper, mak-ing it easier for central banks to dispose of and minimising the environ-mental concerns.

Durasafe® and Viewsafe®

However, the story does not end here; indeed it has only just begun. Oneexciting facet of the combination of the advantages of polymer and paperin the paper-polymer-paper structure is the enhanced capacity for securitydesign, using both new and traditional security features. Security featuresassociated with paper (such as security threads, holograms, and cylinder-mould watermarks) can be embedded in the core of the substrate. A trans-parent window, seen from one side, immediately draws the public’s atten-tion towards the encapsulated visible technology. The value for the centralbank is obvious when compared with expensive communication and train-ing alternatives. Traditional security features can be used in all denomina-tions. Durasafe® encapsulates these visible security features in the windowarea of higher risk banknotes. The concept is known as Viewsafe® and itis changing the way in which banknotes are designed.

Viewsafe® is still a relatively simple product extending the possibilities ofDurasafe® for banknote substrate design. Traditional visible security fea-tures can be added to the secondary paper layer before beginning extru-sion. The main paper layer is also cut before extrusion to expose the tech-nologies encapsulated on the inner surface of the opposite paper layer.When the two layers of paper are fused with the transparent polyamide, atransparent window is formed over the security element, leaving it totallyvisible, but protected behind the polymer core. The Viewsafe® window

The introduction of polymer stimulated majorchanges in the conservative banknote indus-try. Although many paper manufacturers andbanknote printers saw disadvantages in thisnew material, its use has registered unbrokengrowth. Central banks showed particular inter-est in the step forward polymer represented interms of durability and the possibilities itoffered for the inclusion of transparent win-dows. However, paper manufacturers foughtback with new paper formulations and dur-ability enhancements, thus putting a brake onthe adoption of polymer. Paper has advan-tages such as its touch and feel, ease of print-ing, ink adherence and the ease with whichtraditional security features such as holograms,security threads and cylinder-mould water-marks can be incorporated.

Durasafe®: the contributionfrom Landqart

Andrew Bonnell Landqart AG

Combining paper and polymer

When polymer first appeared, Landquart AG was a security paper manu-facturer supplying paper for the production of banknotes denominated inSwiss francs and other major currencies. The firm considered the possibil-ity of introducing polymer, but sought to do so in a way that allowed trad-itional security features to be included and without compromising the advan-tages of paper. In 2006 this idea developed into a concrete plan. The resultwas Durasafe®, a new fully patented standard in the field of high securitypaper for banknotes.

The concept is simple but unique. Durasafe® comprises a three-layer sub-strate structure. The two outer layers of cotton fibre paper are producedon a traditional cylinder mould. The central layer is a core of special trans-parent polymer providing mechanical strength and durability, and whichforms transparent windows in zones where the layers of paper are cut awaywith matrixes. In terms of handling, printing and processing, Durasafe®behaves similarly to standard banknotes.

The production process involves a conversion stage in which two reels ofcotton-fibre paper are bonded to the polymer layer in an extrusion processunder high temperatures and pressure. The hot molten polymer penetratesthe microscopic pores of the paper layers before cooling rapidly. Theprocess does not use glue, adhesive or laminated layers, with the resultthat a firmly bonded compact structure is produced, making it impossibleto separate the layers. Windows are created using a cylinder with a matrixmodule to produce cuts on the main and secondary side of the paperbefore starting the extrusion process. Each matrix module creates inde-

Opinion

An example of Irisafe® Micro / Landquart AG



attracts the public’s attention by highlighting the security feature that design-er intends the public to use to verify authenticity. It is a simple but extreme-ly effective way of changing how the public habitually performs authenti-cation checks.

Landqart and iridescence

Another new and interesting visible security feature developed by Landqartis Irisafe® Micro. This is a distinctive and easily recognisable optical tech-nology which is applied during the final drying stage of paper manufacture.This patented element cannot be replicated by printing. Up to five irides-cent colours can be obtained simultaneously, which are laid down as stripsin a single process if high precision varnishing is performed. The varnishingallows each colour to be applied individually, achieving perfect registrationof the various colours to improve the effect while reducing susceptibility tocopying. With the choice of six standard iridescent colours, thousands ofcombinations are possible and personalised colour codes can be offered tomatch the specific requirements of each individual customer.

Of course, iridescence is itself a proven method of avoiding copies beingmade with inkjet printers or even using offset printing. What is more, a sim-ple Irisafe® Mirco strip is the perfect means for a broad spectrum of con-cealed security features, including radio-frequency microchips, which are generally toolong to be used with inking processes such asoffset or even intaglio.

An additional option is Polarisafe®. This fea-ture combines simple ultraviolet fluorescencewith a more complex level 2 covert securityfeature. As well as reacting like ordinary ultra-violet fibres when excited by a standard ultra-violet light source, under a polarised lightsource, Polarisafe® shines or sparkles like starsin the night sky. The molecules of fluorescentink in Polarisafe® pigments are inherentlybound to the pigment molecule structure,which produces the sparkling effect. If the notesparkles, it is because of the presence of a realphysical particle and not a drop of ink. Fluor-escence can be imitated by printing; the Polar-isafe® effect cannot.

For Landqart AG the success of security fea-tures should not be considered only in relationto counterfeiting but also in terms of the needsof their legitimate holders. Landqart AG tech-nologies have been developed to meet theneeds of printers and central bank customers.Designers need a real banknote as the palettefor their artistic designs. Durasafe® and Irisafe®Micro are fully integrated in the designprocess. Irisafe® Micro, like most security fea-tures acts inside a Viewsafe® window or onthe outside of Durasafe® or any other bank-note paper.

On the outside of the paper, Irisafe® Microcan be overprinted with no impact on thebanknote design, thus giving ultimate flexibil-ity to the designer. As the technology isapplied at the paper mill, printers have maxi-mum scope for creativity. A broad range ofcombinations and permutations allow eachcentral bank to assign exclusive colour com-binations for the country and even for a sin-gle denomination.

Durasafe®: the contribution from Landqart

Opinion

Untitled / JDN

The Durasafe® substrate makes it possible to create virtual window designson any part of the banknote as the polymer core is transparent and liesbeneath the whole paper surface. This gives impressive design flexibilitycompared with semi-transparent security threads or the patches that arecommonly identified with windows. Cutting away the paper layer on eitherside of the Durasafe® structure with a matrix yields the concept of theThrusafe® window. By designing a variety of complex shapes in the cuts, athird totally transparent form is created, superimposed on the cut areas. Itdoes not matter how it has been designed, as the result with Durasafe® atotally flexible window.

Landqart AG’s strategic commitment

As part of the Fortress Paper Group, a publicly traded company on theToronto stock exchange (TSE X: FTP), Landqart AG has recently begun aprogramme of investment is worth 50 million Swiss francs to raise its cap-acity to manufacture high security paper for banknotes to 10,000 tonnes.Landqart’s reputation for professionalism, combined with the company’stransparent and public management that sets it apart from the majority ofprivate firms. It is committed to expanding its productive capacity, innova-tion and reputation for quality, at a time when open and transparent rela-tionships are becoming the norm.



FabrianoDnA: Durable, natural and Authentic

Opinion

FabrianoDnA: Durable, natural and Authentic

Sergio Antoci Fedrigoni SpA

“Money makes the world go around” andnothing exemplifies the significance ofmoney better than banknote paper.Countless people around the world han-dle banknotes every day, and banknoteshave to withstand all types of environ-mental conditions, from subzero tempera-tures, to damp and heat. However, thereis no better medium than paper for thefeatures that users associate with bank-notes and look for in them, such as water-marks, security threads, intaglio printing,and the touch and feel of paper itself.

This new paper type has been designed to extend banknote lifetimes, andthis is achieved by applying an anti-soiling solution to the paper surfaceduring the manufacturing process. This solution integrates entirely with thenatural cotton fibres and is an essential factor in saving energy and extend-ing banknote lifetimes. The use of FabrianoDnA does not affect the bank-note manufacturing cycle at the printing works, thanks to the high degreeof affinity this paper has shown with inks and other security features asso-ciated with banknote paper.

The surface treatment applied provides greater protection against theadverse effects of soiling. This has a direct impact on the banknote life cycleand avoids problems when they are used in sorting machines and otherelectronic devices. Moreover, FabrianoDnA improves resistance to damp,making it an ideal paper type for tropical countries.

The defining characteristics of the FabrianoDnA substrate are:

■ Paper: the substrate is cotton-fibre paper in which the DnA solution isembedded.

■ Strength: the DnA anti-soiling solution gives the substrate greater dur-ability.

■ Flexibility: the DnA substrate is compatible with all existing banknote print-ing machines and no modifications to handling and processing equip-ment are necessary.

■ Environmentally friendly: the DnA substrate is made entirely in the papermill machinery without requiring a varnishing process, making it moreenvironmentally friendly than other varnished paper substrates.

Paper manufacturing tradition

All Fabriano’s paper is manufactured using hydroelectric power and natu-ral gas, and the company holds ISO 14,001 and ISO 9001 quality certifi-cates. This privately owned company manufactures in Europe and sellsworldwide, specialising in the production of high-quality, special, adhesiveand artistic papers with a high technology content and respect for the envir-onment.

Fabriano’s tradition in paper manufacturing goes back to 1264,and Fabriano’s expert papermakers’ achievements include theinvention of the watermark. This craftsmanship has been appreci-ated over centuries by artists, publishers, intellectuals, mints,banks, and others. For example, an extant document signed byMichelangelo addressed to his friend Nicholas was written onFedrigoni paper. Today, Fabriano is part of the multinationalFedrigoni group, combining investments in technology andresearch with history and tradition.

Paper reel / Fedrigoni SpA

A longer life for banknotes

Fedrigoni has met the challenge of extending banknotes’ lifetimes withoutlosing their qualities. At its paper mill, which has been a leading producer forcenturies, a new banknote paper concept has been developed: Fabrian-oDnA (Durable, natural and Authentic).


Opinion


Long-life substrates

The quality of circulating banknotes

Banknotes’ condition during their lifetime can be evaluated in terms of theirsoil resistance and their degree of soiling, how well they retain their printquality and, finally, the mechanical strength of the substrate. Issuing Cen-tral Banks are on the lookout for ideal substrates to meet a number of spe-cific needs:

■ Security: soiling makes it difficult to check security features such as water-marks and intaglio printing, thus making it harder for the public to readi-ly identify counterfeits.

■ Economy: withdrawing banknotes increases Central Banks’ costs, as itobliges them to print more banknotes.

■ Technical requirements: the paper’s loss of stiffness and mechanicalstrength makes automated banknote handling more difficult and rendersbanknotes unsuitable for dispensing through ATMs.

Options for enhancing the durability of circulating banknotes

Manufacturers have developed solutions extending average banknote life-times. In particular, Arjowiggins Security offers two durable substrates:

■ Diamone®

This is applied to the paper during the manufacturing process and offersimproved ink adherence, and greater resistance to soiling and accidentalwashing. This improved print stability and enhanced soil resistance extendsaverage banknote lifetimes by 70%. The product comprises a 100% cotton-fibre-based structure, making its appearance identical to that of a paperbanknote. There is therefore no change in the security features, print, feelor sound of the banknote. No changes in established handling proceduresare required and no modifications need be made to sorting machines. Fromthe economic point of view, this is a cost-effective option because it doesnot require additional equipment to be used or modifications to be madeto the printing process. Moreover, the level of public acceptance is good,because the change is imperceptible and banknote security features canbe checked easily.

■ Diamone® Composite

This substrate was developed with the aim of protecting the paper againstmechanical deterioration, while conserving the anti-soiling features of Dia-mone®. The surface and composition of the fibres are modified by addingsynthetic fibres to the cotton pulp. This produces a paper able to withstandmultiple folding and tearing. The synthetic fibres make up between 8% and15% of the total fibre composition, depending on the desired technicalcharacteristics. This reinforced fibre structure, with enhanced anti-soilingproperties, offers a cost-effective solution to counter the soiling and phys-ical deterioration banknotes suffer when in circulation. The average bank-note lifetime is substantially extended as treated paper lasts more thantwice as long as conventional 100% cotton paper. Banknotes are printed in

Long-life substratesPierre Doublet Arjowiggins Security

A durable and, in particular, soil-resistant substrate for banknote manufactureis of particular interest to Central Banks responsible for issuing banknotes.

exactly the same way as with any conventional cotton substrate, withoutthe need for additional processes, and the substrate is fully compatible withall commonly used security features such as security threads and water-marks.

Substrates and health

In its efforts to keep circulating banknotes clean and good quality, ArjowigginsSecurity has gone one step further and taken invisible dirt into account.Microbes are present everywhere and banknotes are no exception, makingthem potential carriers of pathogens and a route for disease transmission.Arjowiggins Security was one of the first companies in the sector to takeinto account the risk that contaminated banknotes might transmit disease.In this area, it has benefited from its parent company’s know-how in thefield, in particular its experience deriving from its medical and hospital-relat-ed work. Our company has worked with renowned bacteriologists at LyonHospital and the Nosoco.tech laboratory. The result is the market launchof the Bioguard® product, a banknote substrate treatment limiting germproliferation, making it more resistant to viruses, bacteria and microscopicfungi throughout its lifetime. Bioguard® is added to the paper during manu-facture, protecting the surface of the paper and its fibre structure againstmicrobes. This product is manufactured from natural materials such that itposes no threat to human health.

Conclusion

Long-life substrates are particularly recommended for low-denominationbanknotes, which change hands frequently during their lifetime in circulation.Diamone® and Diamone® Composite have been used successfully by vari-ous public and private printing works, and are currently in use in over 50countries.

Structure of Diamone® Composite / Arjowiggins Security



Extending banknote lifetime

Opinion

Watermarks as a means of strengthening banknotes

Seven years ago De La Rue created a technology to boost the mechanicalstrength of banknotes by adding watermarks to the corners and edges ofthe paper. This feature has been widely adopted, and it is now incorpor-ated more than 17 billion banknotes around the world. Enhancing themechanical properties of the paper with watermarks integrated during theprocess of forming the sheet of paper with a cylindrical mould leveragesthe process’s technological and economic advantages. Forming the sheetof paper is an expensive process to perform, but the added cost of incor-porating watermarks during this process is insignificant.


Bridget Taxy De La Rue Currency

Incorporating banknote security fea-tures during the initial manufactur-ing stages by embedding them inthe paper offers significant advan-tages, as these features are thenpresent in the paper throughout thebanknote’s lifetime. According to DeLa Rue, the combined use of coat-ings and reinforcement of themechanical properties of the paperwith watermarks can offer an effect-ive and economical solution com-pared to more expensive papertypes containing synthetic fibres orlaminated substrate structures. Inthis article, the firm also presents itsown version of a coated polymer forlow-denomination banknotes, and atransparent window integrated in asecurity thread which is insertedduring the paper manufacturingprocess.

Standardpaper

Coatingswith

reinforcedpaper

Syntheticfibres

Laminarsubstrates

Polymersubstrate

Tear resistance

Doublefolding

Abrasion

Soiling

Relativecost

€ €€ €€€ €€€

Performance of standard paper Modest improvement Significant improvement

CornerstoneTM was the first watermark structure to be used to reinforcecorners. This is an element which increases banknote stiffness by over50%, significantly reducing the existence of folded corners. Given centralbanks’ quality policy, reducing folded corners significantly cuts the num-ber of banknotes that are unfit for circulation. This characteristic is currentlyin use by 60 central banks for almost 200 banknote denominations.

EdgestoneTM is a recently developed feature which increases the tear resist-ance of the edge of the long side of the banknote. Tests performed haveshown an increase of 30% in the strength of the long side edge of the bank-note, matching the figures for the short edge. This feature can be used incombination with CornerstoneTM to obtain even better results.

Coated paper to protect against soiling

Coated papers are currently the most widely adopted solution to increasebanknote durability and, according to De La Rue’s estimates, account forover a third of the total paper banknote market. There is a broad range ofcoating solutions on the market using various different chemicals, and witha varying number of layers and application methods. One example is AntiSoil Treatment (ASTTM), which is applied online at the paper mill.

PlatinumTM is a varnished paper which has delivered excellent results. Anincrease in luminosity readings of between 20 and 30% has been measuredin laboratory tests, which could represent an increase banknote lifetime ofover 50%, depending on the circulation conditions to which the banknote issubjected. To simulate banknote soiling in the laboratory, without needing toperform an external circulation trial, De La Rue uses the FIRA soiling test,which measures colour luminosity (L*) at different levels of soiling.

Characteristics of different substrates




Opinion

Alternative substrates

The figure shows the results observed when comparing banknotes withdifferent substrates, drawn from various tests performed in De La Rue’slaboratories.

As the table shows, polymer substrates yield greater durability and mayrepresent the most cost-effective solution for banknotes subjected to inten-sive use, i.e. banknotes circulating with highest frequencies, under adversecircumstances, and which are returned to central banks relatively infre-quently. As standard paper substrate security features are less importantin these denominations, polymer may be a cost-effective choice. Polymerhas been adopted by many central banks and is used in approximately 8%of all banknotes manufactured.

Against this backdrop, De La Rue is developing its own polymer substrate,called FlexycoinTM, which is an option suitable for low denomination polymer

banknotes. It consists of a multilayer varnishon a durable polypropylene core with flexo-graphic printing. The core is purchased fromone of Europe’s main manufacturers of plas-tic film and the coating is applied by De La Rueat its own works. Security features which canbe checked by the public, professional cashhandlers and sorting machines can be printedon the banknotes and then protected by post-coating.

A good design approach integrates low de-nomination banknotes with other banknotes inthe series. To do so, the central bank needsto be able to use the best substrate from eachdenomination while keeping an attractive seriesof banknotes in circulation.

A security feature for paper

De La Rue considers paper banknotes hard tobeat in terms of security features and hasdeveloped OptiksTM, a wide security thread forhigh-quality paper banknotes, suitable for veri-fication by the public. This security thread is 18

Obverse (left) and reverse (right) of a banknote with an OptiksTM security thread / De La Rue Currency

Combined use of EdgestoneTM and CornerstoneTM / De La Rue Currency

mm wide and incorporates a moulded transparent window. On the obverseof the banknote the user can see a distinctive see-through decorated trans-parent window and on the reverse a wide, demetalled security thread. Sofar, this element has been adopted by nine central banks for use in 17denominations.

Concluding remarks

Effective solutions exist to strengthen and varnish paper so it meets themechanical and anti-soiling requirements needed for most banknotes. Poly-mer substrate is a proven option for low denominations. Nevertheless, otherimportant considerations must be taken into account that influence thechoice of substrate, such as cost, security, culture and the quality policyfollowed by the issuing authority. The choice of substrate must not be abarrier to the design of a banknote family, such that good design allowslow denomination banknotes to be integrated with the rest of the bank-notes in the series, even though they use different substrates.



Developing improved banknote substrates

Opinion


Antonio Olmos Fábrica Nacional de Moneda y Timbre-Real Casa de la Moneda (FNMT-RCM)

In the light of the concern shown bycentral banks in recent years about thequality of banknotes in circulation andthe costs associated with integratedcash management, the FNMT-RCM setout to look for new solutions for theseissues. This work led to the develop-ment of FLESURE®, a new type ofsubstrate which reduces banknotesoiling, and TACTOCEL®, a new tac-tile security feature, which representsa step forward in terms of adjusting thebalance between visual and tactilebanknote features which are difficultfor counterfeiters to reproduce.

Starting with milled cotton fibre, the fundamental raw material for securitypaper, the fibres are treated and a special composition prepared com-bining various formulations of natural and/or synthetic fibres using differentspecific bonding treatments. The product obtained is a paper offeringgreater mechanical strength without affecting the application of the usualsecurity features, such as watermarks, threads, fibres, holograms, etc.The new substrate has the added feature that a layer of varnish can beapplied to protect it from soiling without this affecting its behaviour in sub-sequent offset and intaglio printing stages. The aim is to enhance thepaper’s anti-soiling properties, while maintain the banknotes’ tactile fea-tures. The photograph above shows the way FLESURE® paper performsbetter than traditional paper when subjected to soiling tests of the sametype as are carried out during the approval process required by one of ourcustomers.

FLESURE® has greater mechanical strength than traditional paper and itsanti-soiling properties can extend banknote lifetime and keep banknotes inbetter condition. This is achieved while conserving security traditionalsecurity features and with no loss of performance during printing. Indeed,some features are even improved.

This is an evolving product, as the FNMT-RCM is still working to improve itsfeatures and adapt it to customer needs. This ongoing work has enabled thevarnish application method to be perfected, yielding a series of advantages:

■ A more uniform varnish layer

■ Better contact between the paper and varnish.

■ Perfect adjustment of the layer’s thickness.

■ Precise setting of manufacturing parameters.

Banknotes subjected to soiling tests: FLESURE® paper (left) and normal paper(right) / FNMT-RCM

FLESURE®

This is a long-lasting security paper with high mechanical strength and anti-soiling properties, developed by the R&D Department of the FNMT-RCM’spaper mill. Its main characteristics are:

■ Paper manufactured from cotton-fibre.

■ Fibre treatment and special fibre compositions of various types to achievegreater strength.

■ Paper coating and/or varnishing.

■ Fully compatible with standard security features: watermarks, threads,fibres, holograms, etc.

■ Good performance under normal printing processes: maintains condi-tions necessary for ink adhesion, surface finish improves appearance ofoffset printing and intaglio line sharpness.

■ Allows for different product designs according to customer’s needs.

In 2003, the FNMT-RCM addressed the challenge of preparing a banknotesubstrate with the same security and usage characteristics as traditionalpaper but with greater strength. It therefore set up a working group bring-ing together technical experts from research and development, productionand the laboratory.




Opinion

■ Online information about fundamental characteristics, such as the per-centage of solids, paper weight, moisture content, temperature and drying.

■ Quality guarantee.

Moreover, the FNMT-RCM has embarked upon a line of work aimed attranslating each customer’s specifications into product manufacturingparameters in order to be able to offer a fully customised solution.

TACTOCEL®

TACTOCEL® is a new overt security feature suitable for inclusion in securitypaper which is capable of a wide range of possible combinations with otheranti-counterfeiting features. By using an adaptive relief inserted into thestructure of the paper, it meets the important need among the visuallyimpaired to be able to identify banknotes by touch. The technical basis is theincorporation of special components in the paper during the early stagesof manufacture. These elements, once incorporated, swell during subse-quent stages of paper manufacture when heat is applied to dry the paper,thus giving it these special tactile characteristics.

The implementation uses a cellulose strip as a substrate for the expandingelements. These elements are added to the strip by means of a series ofprinting processes, allowing the tactile motif to have multiple possibledesigns and potentially include a whole range of figures, forms and com-binations thereof. Moreover, the cellulose strip makes it possible to com-bine the tactile element with a wide variety of standard security featuressuch as luminous, phosphorescent or magnetic materials. This tactile elem-ent is therefore a feature which can be tailored to meet the needs of eachindividual customer.

The manufacturing process for TACTOCEL® consists of inserting a cellu-lose strip with expansive agents printed on it into the security paper dur-ing manufacture. These agents are part of a special ink which can alsoinclude various colours, security features, designs, etc. When heat is appliedto the sheet of paper, it expands giving it the characteristic relief. As paperis heated as a normal part of the manufacturing process, no additionalprocess steps are required. The cellulose strip, and the expansion agentsit contains, may be included in specific regions within the paper so as toform different figures or legends, and make up various designs or combi-nations of elements. These elements are located in a strip along the noteor a transversal register.

The special characteristics of the expansion agent mean that the relief isable to recover after being subjected to pressure. This means that the fea-ture is entirely compatible with normal paper manufacturing processes. Itonly requires small adjustments to achieve the proper insertion of the strip,guarantee an appropriate increase in ink and preserve the relief obtained. Itis fully compatible with down-stream document printing processes as itdoes not require special adjustment and does not affect the quality of off-set or intaglio printing.

The main advantages of this new product are:

■ Flexible design, allowing it to be customised.

■ Compatibility with the substrate and other level 1, 2 and 3 security fea-tures.

■ Integration with the substrate as an additional element of protection.

■ Readily adaptable to the current paper manufacturing and printingprocess.

■ Does not affect ink adherence or reduce the speed at which banknotescan be printed.

■ Final relief tailored to customer requirements. Thicknesses of up to 150microns have been achieved, depending on the specific design specifi-cations.

■ Collaboration with SICPA on the development of new inks and elementsto include in the TACTOCEL® package.

To conclude, TACTOCEL® emerged from a complimentary research lineat the FNMT-RCM, which was looking for a novel security feature that wassimple, low-cost, easily recognised by the public, while being easy to imple-ment in the manufacturing process and difficult to counterfeit.

Paper manufactured with TACTOCEL® / FNMT-RCM



Mexican banknotes

Banknotes and Coins

Mexican banknotesManuel Galán Banco de México

For over 40 years the Banco de México purchased its banknotes from thefirm American Bank Note Co. However, in the late 60s the Central Bankdecided to build a banknote printing works and produce its own banknotes.Thus, in December 1969 the Banco de México banknote printing workswas opened.

The new series of banknotes

In 2004 work began on the design of a new series of banknotes with themultiple objective of hindering counterfeiting; incorporating features whichallowed the visually impaired to identify the denominations in circulationcorrectly; and utilising the results obtained from the pilot project on the useof polymer for banknotes, run by the Banco de México over the period2002-2004. A method was defined to evaluate all the commercially availableelements; the requirements of various cash users were established; inter-actions were analysed between different security features, costs, the poten-tial for industrial-scale production, the difficulty of using reproduction andcounterfeiting, and the ease of use for the public, etc. It was judgednecessary for the various denominations of the series to have different sizes,and in particular, that they have different lengths.

The issue was planned with a timescale of approximately four years asover the period from 2006-2010 the Central Bank also issued two com-memorative banknotes to mark the anniversary of the Revolution and Inde-pendence. Coordination between the Bank’s cash department and print-ing works was very close. However, when production capacity and stocksallowed, it was decided that some denominations be replaced as rapidly aspossible in order to minimise the coexistence of different banknote types.Additionally, a public information campaign was run on television, radio,in newspapers, journals/magazines, on the metro, phone cards, posters,and leaflets, etc. describing the security features of the new banknoteseries.

Features of the 100 Mexican peso banknote

Design

Issue of the 100 peso banknote began in August 2010. They are manu-factured using 100% cotton paper and have dimensions of 66 mm in

height by 134 mm in length. The predominant colours are red and yel-low.

On the obverse, the main motif is a bust of Nezahualcóyotl, who formed theTriple Alliance between Texcoco, México-Tenochtitlán and Tlacopan around1431. This same year he was elected Lord of Texcoco, and during his reignhe reorganised the government and passed laws strengthening the state.He also ordered the construction of an aqueduct to supply drinking waterto México-Tenochtitlán. He governed with prudence and justice and, thanksto his fine writings, is known as the Poet King. He set up various schoolsfor the study of astronomy, language, medicine, painting and history. Hewas also concerned with the conservation of various species of flora andfauna, promoting the conservation of the woods of Chapultepec.

On the reverse is a vignette of a stylised glyph of Nezahualcóyotl, whosename means fasting coyote or hungry coyote, next to a representation ofan aqueduct, the Templo Mayor and the central square of México-Tenochtitlán.

Structure of banknotes in circulation

Denominations

As in the case of the preceding series, the new series of banknotes has six denominations: 20, 50, 100, 200, 500 and 1,000 Mexican pesos.

Dimensions

The banknotes include a series of raised geometrical marks, which as well as the different lengths used for each denomination, are intended tomake the banknotes easier for the visually impaired to recognise. There is a difference in length from one denomination to the next of 7 mm, start-ing with 120 mm for the 20 Mexican peso banknote, and so on, up to the 1000 peso banknote, which is 155 mm long. It was decided that all thebanknotes should have a uniform height of 66 mm so as not to reduce the productivity of the printing process or affect how they are handled by ATMs.

Substrates

In Mexico, the lowest denomination banknotes are not the shortest lived, because the 20 peso banknote is currently being manufactured from poly-mer and has a longer duration than the 50 and 100 Mexican peso banknotes. Based on this experience, it was decided that at least the two low-est value denominations (20 and 50 Mexican pesos) should be printed on a polymer substrate, and the rest on cotton paper.

Security features

An in-depth study of the range of security features available was conducted to rule out those considered redundant and select features easilyrecognised by the public, the aim being to bolster efforts to combat counterfeiting. As a further constraint, it was decided that the cost of thebanknote should not be increased by more than 10%.

Denomination Circulation

$ 20 12%

$ 50 14%

$ 100 19%

$ 200 26%

$ 500 27%

$ 1,000 2%

Data from end of 2010



Mexican banknotes

Banknotes and Coins

Printing techniques

■ Offset. Used for multicolour simultaneous printing of the images on thereverse and to print the background of the obverse, in which some of thecolours fade to create an iris effect.

■ Intaglio. Rotogravure is used to print the main design features on thereverse so as to deposit a thicker layer of ink and so give the banknote relief.

■ Letterpress. Used to print the banknote serial number in the form of aletter and a seven digit number. The combination of the serial number,the offset printed number of the banknote series, and denominationuniquely identifies each unit.

Security features familiar to the public

■ Motion thread (known in Mexico as a 3D thread). Mexico was the sec-ond country in the world to use this feature. Like all its paper-based bank-notes, those in this denomination have a windowed security threat with athree-dimensional effect in which the pre-Columbian symbol for a snailcan be seen, which is associated with the God of the wind (Ehécatl). Thesymbol appears to float and move horizontally in and out of the banknotewhen it is tilted from horizontal to vertical and back.

■ Optically variable ink. Elements which change colour are printed on allMexican banknotes. On this banknote, the right area of the corn cobwhich appears in the top left-hand corner of the banknote is printed witha special ink which changes colour from brown to green when the bank-note is tilted at various angles.

■ Watermark. When the banknote is held up against the light, the bust ofNezahualcóyotl can be seen in the print-free area.

■ See-through register. Figures are printed on the obverse and reversein such a way that when the banknote is held up against the light theymatch up to form an image of the Mexican republic and a wind rose inthe top right-hand corner of the banknote.

■ Micro-printing. All the banknotes in the new series incorporate small textmicro-printed in characters of decreasing size.

Note: The number shown beside each of the security features of the 100 Mexican peso banknote refers to the number given to each feature in the “Banknote security features” of the Mis-cellaneous section of issue 8 of BILLETARIA, where a more detailed description of each security feature can be found.

12. Optically variable ink

6. Intaglio printing

1. Multitone watermark

7. Tactile marks for the visually impaired

5. Thread with floating images

20. See-through register

Statistical data (December 2010) Mexican pesos Euros

Value of banknotes in circulation (millions)

666,722 40,290

Average value of banknotes in circulation

238 14.4

Number of banknotes in circulation (millions)

2,794

Banknotes in circulation per inhabitant 25

Value of banknotes in circulation as ashare of GDP

5 %

16. Microprinting

THE 100 MEXICAN PESO BANKNOTE



The Banco Central de Bolivia’sTreasury Subdirectorate

Walter Orellana and Abel Sanjines Banco Central de Bolivia

The Banco Central de Bolivia’s Treasury Subdirectorate

Banknotes and Coins

Organisation and functions

The Treasury Subdirectorate plans, coordinates and manages treasurytasks and operations relating to banknote and coin demand forecasts, stockcontrol and storage, the sorting and distribution of banknotes and coins,and destruction of unfit currency. The Subdirectorate is also responsiblefor banknote storage and forensic analysis of counterfeit banknotes. In add-ition, it coordinates the running of training programmes aimed at teachingthe public about looking after cash and identifying its security features.

Cash Management Analysis Area

This area comprises a team with a variety of professional backgrounds(economists, physicists, administrators) who systematically prepare thewhole range of statistics necessary for the management of banknotes andcoins and forecasting banknote durability, cash demand, stock coverage,the volume of banknotes and coins to be procured, and the volume of bank-notes due to be destroyed and needing to be replaced. This team alsomonitors developments and conducts research into security features andthe materials used in the manufacture of banknotes and coins, and evalu-ates the results of the surveys on cash circulating in Bolivia and providessupport for the development of public education programmes.

Treasury Department

This department’s main functions are the stockcontrol and storage of banknotes and coins, receiv-ing and distributing banknotes and coins, countingand sorting banknotes, withdrawing and destroy-ing banknotes sorted as unfit, and the custody ofsecurities. The Treasury Department comprises:

■ An accounts and deposited securities manager,who supervises treasury accounting operationsand is responsible for the custody and registeringof securities.

■ Banknote security features technician, who analyses, records and clas-sifies counterfeits, issues affidavits and performs forensic analysis of coun-terfeit banknotes.

■ Central Vault and Auxiliary Treasury managers, who receive and deliverstocks of the national currency and sometimes US dollars (given that thestorage capacity of the central vault is much greater than that of the aux-iliary treasury, so it is involved when large sums are moved).

■ Cashiers, responsible for dealing with the public and the financial system,receiving deposits and making cash payments.

■ Unfit banknote store manager, responsible for storing withdrawn bank-notes and scheduling and carrying out their destruction.

■ Counting clerks, who are responsible for counting, verifying and sortingdeposited banknotes as fit or unfit for financial institutions to put backinto circulation.

The Banco Central de Bolivia’s TreasurySubdirectorate reports to the MonetaryOperations Directorate and comprisesthe Cash Management Analysis Area,which works directly with the Subdirec-torate on the Planning of Currency Man-agement, and the Treasury Department,which is responsible for operationaltasks. The Subdirectorate has a work-force of 29, who work at the Bank’s headoffice in the city of La Paz.

OPERATIONMANAGER

DEPUTY TREASURYMANAGER

HEAD OF TREASURYDEPARTMENT

SECRETARY

ACCOUNTS AND DEPOSITEDSECURITIES MANAGER

BANKNOTE SECURITFEATURES TECHNICIAN

TREASURY USHER

CURRENCY MANAGEMENTANALYST

CURRENCYANALYST

ADMINISTRATIVESUPPORT AND STATISTICS

COUNTING CLERKS

CENTRAL VAULTMANAGER

UNFIT BANKNOTE STOREMANAGER

CASHIERSBANK CASH DESKSSMALL VAULTVAULTS

AUXILIARY TREASURYMANAGER



The Banco Central de Bolivia’s Treasury Subdirectorate

Banknotes and Coins

Headquarters of the Banco Central de Bolivia in La Paz / BCB

Banknote and coin distribution is performed by cash-in-transit companies,charter flights or special convoys of vehicles, and in the case of the transportof coins and low-denomination banknotes (10 and 20 bolivianos) the cost isshared by the Central Bank.

To optimise the distribution of banknotes to the population, as part of itspayment system policy, the Banco Central de Bolivia has promulgated reg-ulations on the dispensing of banknotes from ATMs, making it obligatoryto provide lower denomination banknotes. The aim is to alter the formerpractice of only dispensing high denomination notes, which was a hindrancefor low value transactions in the national economy. To ensure banknotesand coins are exchanged and change is given by financial intermediariesand guarantee that the public is able to obtain smaller denomination bank-notes and coins, a specific regulation has been passed establishing thebreakdown that must be given to different types of customers and impos-ing penalties and offering reasonable incentives to encourage financial insti-tutions to comply with this service requirement, which is essential to thesmooth functioning of the payments chain.

Quality policy

One of the most important challenges to be tackled in recent years wasthe need to substantially improve the average quality of the banknotes incirculation. A rigorous scale measuring the degree of deterioration of bank-notes has been defined to ensure only good quality banknotes and coins areallowed to circulate. The more rigorous sorting of banknotes, together withthe return to financial institutions of badly sorted banknotes, when the errorrate exceeds 10%, has made it possible to raise the average quality of thecurrency in circulation.

The process of counting and sorting banknotes relies on high speed sortingmachines, which have had their sensors set to the most demanding stand-ards to match the defined quality scale. It is also worth mentioning that, inparallel, manual counting and checks are performed in the case of banknotesin such poor condition that they cannot be processed by sorting machines.

Destruction of unfit banknotes takes place according to a monthly sched-ule which is planned annually according to the forecast volumes of unfitbanknotes which cannot be returned to circulation and the flow of bank-notes that needs to be replaced to ensure the quality of the circulating cur-rency. Unfit banknotes are destroyed using a shredder-briquetter in thepresence of a notary, who witnesses that the banknotes have beendestroyed and draw up the relevant affidavit.

Finally, it is also worth mentioning that in order to educate the public onhow to look after banknotes and check their security features, the BancoCentral de Bolivia has signed an inter-institutional agreement with the armedforces whereby the latter’s units are to provide training in schools and invarious social organisations. Last year, these education efforts reachedapproximately 270,000 people. In the medium term there are plans for thetopic to be included on the school teaching curriculum.

In view of the significant growth in monetary issues in recent years,as a result of increased demand for the national currency and thestepping up of the “bolivianisation” programme, in conjunctionwith an appreciation of the currency, the Banco Central deBolivia’s storage capacity in La Paz has reached its limits. For thisreason, and in order to decentralise cash management, the exec-utive directors of the Bank have approved the construction of analternative cash handling centre in the city of Cochabamba. Themodern new facilities are due to be completed in the next twoyears.

The Banco Central de Bolivia does not have any offices outside thecapital. Cash distribution is therefore carried out by financial insti-tutions in La Paz. The annual distribution programme is based onestimated demand and the lifetimes of the various denominations.

The Banco Central de Bolivia has developed an IT system exclusive fortreasury operations known as the “Módulo de Tesorería” (treasury mod-ule). This module was implemented in June 2000 and is an automated cur-rency accounting and control system connected to the integrated accountssystem. This enables online recording and control of all operations involv-ing cash handling, classifying them by denominations, number of units,banknote condition and physical location (Central Vault, Auxiliary Treasury,Unfit Banknote Store, Correspondent Banks and Savings Banks).

Banknote and coin management

Estimates and forecasts of flows of demand for banknotes and coins aremade using econometric models with a three-year horizon. As Bolivia doesnot have a national mint, estimates are used as the basis for procurementof banknotes and coins through international open calls for tender, which arerun in accordance with the country’s general rules and standards for theprocurement of goods and services.

Statistical data1 2007 2008 2009 2010

Banknotes in circulation– Amount 13,660 16,529 18,265 23,837– Units 208 218 245 319

Banknote payments

– Amount --- --- 10,901 12,879– Units --- --- 156 169

Banknotes destroyed– Amount 548 688 1,899 2,640– Units 18 20 49 52

1Figures refer to the end of the year. Amounts in millions of bolivianos and volumes in millions of units.



Cash Activities and TechnologyThe Eurosystem’s efforts in the search for a longer lasting banknote

Substrate selection process

In order to obtain a broader overview of the range of market solutions avail-able that offer improved substrate quality, the European Central Bank invit-ed leading substrate and varnish manufacturers to a joint seminar in May2003. To evaluate the variety of options for improving durability that wereavailable on the market, together with other alternative substrates underdevelopment, two development activity teams (DAP) were set up to exam-ine the two topics separately. In order, to test the available options, twosets of dummy banknotes were designed and manufactured, for low andhigh denomination banknotes, to which industrial testing methods wereapplied in order to obtain data for analysis.

During the preliminary selection process, seven different substrates andnine types of varnish were selected as candidates by the first DAP for an

analysis of substrate durability, while the second DAP assessed four alter-native substrates and two candidate varnishes.

While the DAPs focused on the technical aspects, it was also felt necessaryto contrast the results obtained with information drawn from the real-lifeexperience of issuing authorities that had used or tested durable substrates.Thus, in October 2003 a questionnaire was sent to 155 central banksaround the world. The responses obtained on banknote lifetime and con-dition, handling, compatibility with automated processing activity, and ration-al decision-making policies at NCBs, provided the Eurosystem withextremely useful information. This showed that two thirds of NCBs contin-ued to use traditional substrates, while enhanced substrates were beingused by 37% of respondents, of which 43% used varnish paper and 30%polymer substrates. The remainder were using hybrid substrates and othertechnical solutions. The data concerning potential improvements to life-times and costs were analysed, but no firm conclusions could be drawnabout extending lifetime. The study’s main finding was that informationabout the public’s reaction to new substrates and the experience withequipment compatibility indicated that more issues remain to be resolvedin the case of varnished paper than with enhanced substrates.

Durability tests (known, for example, as Fristsch, Turbula and Retsch), evalu-ated by the development teams, led to the selection of three substratesand two varnishes as the preferred options, given that they presented bet-ter performance than the others, especially in terms of soiling. The soiling cri-terion was considered to be the most important indicator of unfitness,

The Eurosystem’s efforts inthe search for a longer lastingbanknote

Torsten Meuer and Jérôme Martin European Central Bank

Back in 2003, while the majority of the public in theeuro area appeared to be satisfied with the quali-ty of euro banknotes, certain National CentralBanks (NCBs) began to express their concern overthe rapid deterioration in the perceived quality oflow denomination banknotes. Taking their analy-sis of the quality of banknotes in circulation as thebaseline, measures were taken to improve thequality of circulating banknotes at national level,in the short term, and at the Eurosystem level, inthe medium to long term.

It was a initially thought that significant improve-ments could only be achieved by increasing thefrequency with which banknotes returned to cen-tral banks or by enhancing the durability of thebanknote substrate. Although increasing the returnfrequency was hard to achieve, some NCBs hadalready implemented appropriate measures suc-cessfully. Enhancing substrate durability, whichcould yield cost reductions, was discussed by theEurosystem, which decided to run trials on longer-lasting substrates. This article describes the activ-ities carried out in this field since 2003 and reportssome of the results obtained.

Who’s there? / JDN



23The Eurosystem’s efforts in the search for a longer lasting banknote

Cash Activities and Technology

rationale for this choice was to limit the number of banknotes that neededto be put in circulation. Statistical analysis showed that the test would be asolid basis from which to obtain reliable conclusions after banknotes hadbeen in circulation for approximately 18 months.

The trial was largely successful despite the risks involved. The biggest riskwas that the public discover its existence and that the banknotes becomecollectors’ items, or that they circulate in non-random ways, which would haveprevented a sufficient number of banknotes returning to the NCBs from whichto obtain statistically reliable conclusions. Neither of these problems arose.

The final evaluation and analysis of the external circulation trial had to over-come the difficulty arising from the impossibility of withdrawing all the bank-notes put into circulation, as the trial only lasted 18 months (plus a three-month extension). Reasonable estimates were therefore made using amodel of banknote circulation and ageing relying on various parameters toestimate the banknote survival function. The statistical results obtained wereimportant and even during the trial it was observed that the candidatesbehaved in a very similar way in all three countries. When the varnishedcandidates were compared with the reference banknotes, all the statisticalmodels confirmed the anticipated benefits of varnishing.

Conclusions

To conclude, the study clearly showed varnishing to offer significant bene-fits in the case of both products, translating into an average lifetime exten-sion of circulating banknotes of between, at least, 25% to 50% or more,according to the Eurosystem’s most optimistic estimates. By contrast, theother two products had little or no effect on banknote durability. To quan-tify the potential economic savings a cost benefit analysis was performed,from which it was deduced that even after applying the results of the exter-nal circulation trial conservatively and prudently to the cost model, varnishingbanknotes would produce a significant cost saving for the Eurosystem.

Putting these results into practice satisfactorily will require careful selectionand specification of the varnish (and, therefore, finished banknotes) so as toguarantee consistent behaviour over time. An attempt was therefore madeto develop a laboratory-based performance test. This could be an empiricalsoiling test or a combination of various standard tests characterising thevarnished banknote. Although various test methods have been studied,none has yet proven entirely satisfactory.

according to information gathered from Eurosystem banknote processingcentres. For each candidate, tests were performed by two different printingworks and two independent institutes. The final list of preselected candi-dates consisted of a polymer substrate, a standard paper with a pre-coat-ing, a cotton and synthetic fibre composite substrate, a standard cotton-paper substrate with an ultraviolet coating, and one candidate with water-based coatings.

Internal circulation test

The objective of the next work programme, known as SUBCOAT II, was tocontinue subjecting the five preselected candidates to tests. The capacityto produce and handle the selected candidates was tested and a broadrange of selection and handling tests performed. Additionally, the range ofactivities conducted included health and safety, and environmental impactstudies.

The results of these tests raised a number of doubts as to whether theresults of the laboratory tests were actually representative of how substratesbehave in circulation. Prior experience of external circulation tests carriedout using national banknotes in countries whose NCBs now formed partof the Eurosystem (for example, the Netherlands) suggested that labora-tory tests were incapable of simulating real-life circulation conditions. Giventhe difficulties of performing external circulation tests with five different can-didates, it was decided that an “internal circulation test” initially be con-ducted. Certain NCBs already had experience in running this kind of trial,and as a result, the existing methodology was adopted.

Four NCBs took part in the trial, forming groups of ten people drawn fromamong the bank’s staff. Each group was given a set of 100 dummy bank-notes, in which there was a mixture of candidates and standard banknotes.Each participant was asked to exchange these banknotes a couple of timesa day for nine months. After five and seven months 20 banknotes were col-lected from each group to check their quality. The remainder were exam-ined at the end of the nine-month period. The results of these tests werein some cases significant, showing clear divergences from the resultsobtained in laboratory tests. In contrast to the results obtained previously,certain candidates did not perform better –or even performed worse– thanstandard cotton-paper banknotes.

Taking into account all these findings and the results of the various stud-ies, the conclusion reached was that post-coating should be the systemchosen to enhance banknote durability, as it had a minimal impact on othercharacteristics.

The results of the internal circulation test also showed that the choice ofan enhanced substrate for low denominations could not be based solelyon laboratory results and tests with sorting machines. Therefore, an exter-nal circulation test seemed to be the most appropriate way to analyse thebehaviour of a group of products under real-life circulation conditions andso to establish a correlation between these results and previous findings.This test could also confirm the average lifetime of the candidates, whichunderpins the cost/benefit analysis.

External circulation trial

For the trial it was decided that euro banknotes with properties similar tothose of standard euro banknotes should be put into circulation. Two dif-ferent ultraviolet varnishes and two water-based varnish products wereused. Before putting the banknotes into circulation, tests were run to con-firm that NCBs’ sorting machines and third-party equipment could handlethem and check their authenticity. Checks were also made to confirm thatthey had no impact on anti-theft devices or on health and safety.

The trial was run in three countries, which were selected according to sizeand differing circulation conditions. Trials with €5 banknotes took place inIreland and the Netherlands, and with €10 banknotes in Portugal. The

Child’s play / JDN



The Eurosystem’s efforts in the search for a longer lasting banknote


The quest for a more durable banknote substrate for low denominationshas led to the final assessment that post-coating is the preferred option forthe Eurosystem at this stage. An internal circulation trial was a useful part ofthe evaluation. Nevertheless, only the external circulation trial enabled thereal-life behaviour of the different varnishes to be ascertained. No labora-tory test shows the differences in behaviour between the varnishes underreal-life circulation conditions, and therefore, no correlation can be estab-

lished with the results of the external circulation test. To date, no decisionhas been made on the final specifications of the substrate for the plans todevelop and introduce a second series of Euro banknotes (known as theES2 project). Thanks to the results obtained, several options are now avail-able, and these may be considered by the Eurosystem when the timecomes to decide upon the specifications for low denomination banknotesin ES2.

Seminar on substrates

SUBCOAT I

– Printing and testing– Information gathering

SUBCOAT II

– Printing and testing– Impact study on anti-theft devices– Analysis of health and safetyissues

– Compatibility with handling equip-ment

– Internal circulation test

Preparation of external circulationtrial

External circulation trial

Evaluation of external circulation trial,development of statistical models forbanknote lifetime estimates andadditional impact studies:

– Compatibility of varnishing withinks used in anti-theft devices

– Optical specifications– Performance specifications– Impact on banknote manufacture– Cost/benefit analysis

Seven substratesNine varnishesFour alternative substratesTwo alternative varnishes

Three substrate technologiesTwo varnishing technologies

Post-coating technology

Four varnishing products:

– Two water-based– Two ultraviolet drying

Two varnishing products givingproven durability extension

2003

2004

2005

2006

2007

2008

2009

2010

Á

PROPOSAL FOR LOW

DENOMINATIONS IN ES2

2011

ACTIVITIES

Development of the selection and testing process



25Varnishing solutions for a long-lasting banknote


tecting the banknote against surface soiling, enabling it to remain in circu-lation longer. Varnishing is currently used by numerous central banks world-wide, having become one of the solutions available to reduce the cost ofcash by extending the lifetime of circulating banknotes1.

■ Varnishing polymer and hybrid substrate banknotes

In the case of polymer and hybrid substrates it is necessary to apply anypre-varnish coat in order for the ink to adhere to the substrate. This is fol-lowed by a post-varnishing coat to reduce wear on the print during thebanknote’s circulating lifetime. These varnishes contribute to improving themechanical and anti-soiling properties of these substrates with respect toconventional banknotes printed on cotton paper.

Table 1 summarises the main results of water-based and UV varnishes.

Conventional banknotes manufac-tured from near-white short cottonfibres (so-called “comber noils”),from the recycling of fabrics in thetextile industry and pure cotton fibresare all well established. Today, thenext step is to use varnishing tech-niques to enhance banknote dur-ability and extend lifetimes. This arti-cle presents the features of the var-nishes used and the current optionsfor their application to banknotes.

Varnishing solutions for a long-lasting banknote

Fernando León and Andreas Walter Banco de España and Deutsche Bundesbank

1. According to information from a Eurosystem survey, central banks have issued high durabi-lity banknotes using a variety of techniques: 43% have used varnishing (pre- and/or post-varnishing), 30% have used polymer and the remaining 27% have used some other solution.

Varnished banknote (left), unvarnished banknote (right)

Table 1. Comparison of the effects of varnishes on banknotes

Water-based varnish UV-drying varnish

• Very low gloss

• Good abrasion resistance

• Does not cause repainting

• Does not yellow over time

• Risk of the sheet of paper stretch-ing or shrinking due to high watercontent

• Risk of lumps of varnish formingdue to raised varnish layer

• Low gloss

• Very high abrasion resistance

• Does not cause repainting• Instantly drying/dries instantly

• Yellows over time

• Can irritate eyes and skin duringproduction processes and bank-note sorting

What exactly is varnishing?

A varnish is a combination of liquid resins, solvents and additives (wax,adhesive, photo initiator, etc.), which is applied in the form of a continuoustransparent ink layer. The varnish, once dry, makes the banknote surfaceimpermeable to soiling. The first varnishes used on banknotes were so-called solvent-based varnishes. Today, after a series of improvements, thefollowing types of varnish are used:

■ Water-based.

■ Ultraviolet drying (UV).

■ Double layer, which can be applied in two ways: i) two layers of water-based varnish, and ii) an undercoat of water-based varnish with a topcoat of UV varnish.

Water-based varnishes dry slowly under infrared (IR) and/or warm air. Dur-ing the drying process, part of the varnish layer originally printed on thebanknote evaporates, leaving a final varnish layer that is thinner than theoriginal and almost invisible. UV varnishes are exposed to ultraviolet radi-ation which causes the particles in the varnish layer to bind and so dry veryquickly, such that the thickness of the printed varnish layer is not reduced.In the case of a double layer of varnish, the drying technique depends on thetype of varnish used for each of the layers.

The effects of varnishes on the banknote

■ Varnishing paper banknotes

Banknote paper is a porous material which readily absorbs damp, con-taminant particles and microorganisms. Varnishing creates a layer pro-


Varnishing solutions for a long-lasting banknote



Does varnishing interfere with automatic banknote sorting?

The gloss produced by varnishing must be kept below certain limits orotherwise it might interfere with the cameras capturing the banknote imageduring quality controls in sorting machines at the printing works or with theoptical sensors in the sorting machines employed by central banks to sortused banknotes.

It is worth pointing out that varnishing does not interfere with quality controldevices or sorting machine sensors if the same type of varnish is used onall the banknotes sorted by the machines. However, if more than one typeof varnish is used, it may raise banknote reject rates, given the impossibil-ity of calibrating the sorting sensor to recognise several types of varnish atthe same time. Likewise, the sorting of varnish and unvarnished banknotestogether should be avoided to prevent a significant increase in the bank-note unfit rate during the sorting process.

Production aspect and commercial availability

Flexography is the technique best suited to applying varnish to the bank-note, as it enables a uniform layer of varnish to the surface of the wholebanknote sheet. Optimal anti-soiling protection is achieved from varnishingif the process is applied after all printing processes, including numbering,have been completed, so as to cover all the areas of the banknote surface,both printed and unprinted. The flexographic printing technique is usedboth for water-based and UV-drying varnishes.

For example, the process whereby a single layer of UV varnish is appliedin a single run is a highly standardised solution for banknote varnishing.This process allows a standard varnishing machine to be used, which hasa varnishing unit for each side of the banknote. The thickness of the UVvarnish layer produced is 2-2.5 g/m2, which ensures adequate anti-soilingprotection for banknotes under normal circulation conditions.

Two-layer varnishing at the printing works is another alternative option. Thefirst layer of varnish, which is water-based, adds a thickness of approxi-mately 1 g/m2 to the paper. It adheres strongly to both sides of the paperand offers a good surface for printing on. The second layer is a UV varnish,which gives a thickness of approximately 2 g/m2 and provides good anti-soiling properties. Dual varnishing must be performed on both sides of thebanknote and cover the whole surface.

An alternative to the two-coat varnishing processes is to apply the first coatof varnish at the paper mill and the second layer at the printing works, atthe end of the printing process.

Finally, it is worth mentioning that both the varnishes and the machineryused for the varnishing process are widely available on the market, with avariety of suppliers of each.

Varnishing clearly protects against soiling. Nevertheless, the effective-ness of the anti-soiling protection depends both on the type of varnishused and the thickness of the varnish layer coating the banknote. In thecase of thin layers, it is worth mentioning that if banknotes are in circu-lation for a long time surface cracks may appear in the varnished sur-face, which can collect dirt and so cause dark lines to appear. One solu-tion to this problem is to apply a double coat of varnish (see Table 2).

A comparison between different varnishes

There are four possible options for varnishing banknotes:

1. Varnishing the substrate

2. Varnishing the banknote after printing (post-varnishing)

3. Applying two layers of varnish to the banknote

4. Varnishing with two layers, one applied to the substrate and the other to the banknote after printing

Table 2. Comparison of the different varnishing options

Is it possible to detect that a banknote has been varnished sim-ply by looking at it?

Generally speaking, varnishing can be applied to banknotes without theneed to make any modifications to their design and security features.However, checks always need to be made to ensure that varnishing doesnot affect visual aspects of the banknote or its machine readable fea-tures.

UV-varnish tends to be glossy whereas water-based varnish tends to bematte. The glossiness of a varnish can, to some extent, be modified by themanufacturer so as to minimise its impact and avoid its interfering with theappearance of banknote security features such as, for example, hologramsand colour-shifting optically variable inks. The influence of varnishing onmachine-readable features is minimal, however.

Screen printing O!set Hologram Intaglio

Substrate

NumberingUnprinted areas Varnish

Schematic representation of the thickness of a varnished banknote

Pre-varnishingat paper mill

Post-varnishing at

printing works

Dual varnishing at

printing works

Dual varnishing at

paper mill and printing works

Costs + ++ ++ ++

Equipmentrequirements

Reel varnishingmachine

Varnishingmachine with a

unit for eachside of thebanknote

Varnishingmachine withtwo units for

each side of thebanknote orusing a two

runs process

Reel varnishingmachine and

varnishingmachine with a

unit for eachside of thebanknote

Anti-soiling efficiency

Considerable Good Optimal Optimal

Adherence ofhologram tosubstrate

Improved No effect No effect Improved

Visual impact

None Minimal Minimal Minimal


27Varnishing solutions for a long-lasting banknote



varnish coating on the banknote after printing(post-varnishing) is the solution yielding themost durable result.

■ High durability paper substrates are printed inthe same way as conventional paper. Applyingthe varnish coating after printing requires anextra manufacturing step.

■ The security features of conventional paper arealso suitable for high-durability paper types.Post-print coating has to be avoided in areaswith security features which include lenticularstructures.

■ Post-printing varnishing processes with var-nishes from different suppliers can result in dif-ferences in appearance.

■ Migrating from traditional paper to high durabilitypaper and/or varnishing banknotes after printingis simple as there is no need to redesign bank-notes or adjust equipment, or to run advertis-ing campaigns.

Multitone and electrotype watermarks

Thread Color-Shift /

Color-Fix

Magnetic Intaglio ink

200 Mexican peso banknote on high-durability paper. Obverse (left), reverse (right) / Banco de México

Schematic diagram of the banknote manufacturing processes

RawMaterials

Dual varnishing(Pre-varnishing +post-varnishing)

Dual varnishing (2x post-varnishing)

Paper substrate

Pre-varnishing

Post-varnishing

OffsetSilk screenprinting

Intaglio Numbering Cutting Banknotes

Summary

Banknote varnishing is today a mature solution widely used by centralbanks. Protecting the surface of banknotes with a varnish layer hasproven to be a cost-effective way of achieving the goal of extending thelifetime of banknotes in circulation. Various varnishing solutions exist,each with different characteristics and effects. Banknote varnishing there-

fore appears to be an effective and efficient solution if a series of require-ments are met, such as optimising banknote protection against soiling,minimising the impact of gloss on its visual appearance, minimising dif-ferences in touch and feel compared to unvarnished paper, avoidingproblems in the use of sorting machines and the distribution of bank-notes through ATMs, and, of course, presenting a favourable cost bene-fit analysis.

Analysis of substrates by the Banco de México

(continued from page 29)

Hologramapplication

PAPER MILL PRINTING WORKS





industrial production was tested, and a trial of the banknotes’ performancein circulation and durability was run. At the time there were print durabilityconcerns about colour intaglio printing on polymer, so the image was print-ed using offset with transparent ink intaglio. As regards the paper bank-note, the only changes were to certain aspects of the design so as to cre-ate room for intrinsic polymer features. Moreover, as polymer has limitedresistance to tear propagation, an advertising campaign was run to dis-courage people from stapling banknotes together.

Circulation tests indicated that polymer banknotes achieved an averagelifetime that was 2.8 times longer than that of a conventional paper bank-note. Moreover, studies of public perception indicated a high degree ofacceptance. However, alongside these advantages, there was the prob-lem that when banknote bundles were cut open with a sharp implement,many units were torn. The Banco de México therefore changed its bundle-wrapping procedure to tackle this drawback.

The 20 and 50 peso banknotes in the current series are also printed onpolymer using transparent ink intaglio incorporating the new G-switch®feature, with optically variable ink and a transparent window. It is worth not-ing that the number of counterfeits of the new 50 peso banknote fell sub-stantially (by approximately 10%) compared to the previous banknote.

Moreover, in 2010, 50 million units of the 100 peso banknote printed onpolymer were issued to commemorate the centenary of the Mexican Revo-lution. Laboratory tests have shown good adherence by the colour intaglioink.

High-durability paper substratesBanknote durability analysis

The market currently offers various types of high-durability paper. Some ofthem contain a mixture of natural and artificial fibres, others include anti-soiling surface treatments and other paper types are manufactured with acombination of these features. There are also various types of varnisheswhich may be applied as a coating after banknote printing.

Given that circulation tests are costly and time-consuming, the Banco deMéxico ran a series of laboratory studies to determine what features mightimprove banknote durability. A new methodology was developed to obtainestimates of the average increase in banknote lifetime based on the fol-lowing two assumptions:

■ It is sufficient to compare the appearance of a banknote with that of anew one to assess the extent to which it has deteriorated.

■ Measuring banknote deterioration requires the construction of deteriora-tion curves with a wide interval of levels of banknote degradation.

The graph shows the results of banknote deterioration analysis based onevaluating changes in appearance and using degradation curves preparedby the Banco de México. The laboratory study reveals that the high-dur-ability paper coated with a varnish after printing yielded a considerablylonger lifetime than conventional paper. No results are yet available regard-ing circulation as the trials are still in progress.

The traditional cotton-paper substrate

As a substrate, cotton paper has delivered excellent performance over theyears. However, the inclusion of new security features with a new range ofphysical properties affects how paper behaves during the productionprocess, reducing productivity. Moreover, banknote substrate suppliershave developed different types of high-durability paper and polymer sub-strates. The Banco de México therefore conducted laboratory and circu-lation tests using various types of substrate to substitute for conventionalpaper.

Table 1 sets out the main specifications the Banco de México requires fromsuppliers of conventional paper, polymer and high-durability paper.

Table 1. Main specifications for conventional paper, durable paperand polymer

Some years ago, with a view to reducing costs andoptimising cash management, the Banco de Méxicodecided to change its banknote substrate so as toextend the average banknote lifetime. In order to beable to draw conclusions about the pros and cons ofeach substrate based on practical experience, thenew policy has relied on both laboratory tests and alimited issue of banknotes using the substrate beingtested. Banknotes have been tested in this way usingpolymer substrates, high durability papers and paperto which post-printing coatings have been applied.

Analysis of substrates by theBanco de México

Enrique Guarner Banco de México

SpecificationConventional

paperDurable paper Polymer

Material 100% cotton 100% cotton BOPP

Weight 92-94±3 g/m2 96±3 g/m2 82±8 g/m2

Thickness 122±8 microns 122±8 microns 88±7 microns

Tearing* 83 g-f 83 g-f 20 g-f

Double folding* 2,100 2,100 10,000

Crumpling* 10 12 24

Rubbing* 150 160 300

Soiling resistance tests performed at the Banknote Printing Works.

Polymer substrate

In 2002 the Banco de México replaced its 20 peso paper banknote withone printed on a polymer substrate. Before taking this decision, large-scale

* The figures represent the minimum number of double folding, crumpling or rub-bing operations the substrate samples withstood. Tearing strength is shown ingrams of force.





Digital analysis of degradation by evaluating appearance Adding artificial fibres to the paper substrate does notimprove banknote durability, although it does increasethe banknote’s mechanical strength.

Circulation test with a commemorative 200peso banknote printed on durable paper

In 2008 the Banco de México decided to issue 50 mil-lion units of a 200 peso banknote printed on high-dur-ability paper, commemorating the 200th anniversaryof the country’s independence. Manufacturing and cir-culation tests were performed on various types of high-durability paper, some of which were coated with var-nish after banknote printing.

Four types of paper substrate were used. Each typeaccounted for 25% of the total:

■ Conventional cotton paper.

■ Conventional cotton paper plus a varnish coating onthe banknote (post-varnishing).

■ Varnished conventional cotton paper (pre-varnishing).

■ Pre-varnished + post-varnished conventional cottonpaper.

Except for minor differences, the notes using the fourdifferent substrate types looked the same. The durablepaper types performed well at the printing stage andthere were no problems with varnishing printed bank-notes.

Although it is still too early to fully assess the durabilityof these substrates, with the information obtained inthe laboratory tests and that gathered so far from thereal-life circulation test using the commemorative 200peso banknote, the Banco de México has taken thedecision to print the normal circulation 200 pesobanknote on a pre-varnished paper substrate andapply a post-varnish coating to the banknote afterprinting.

Conclusions

Polymer compared to conventional paper

■ Adjustments are required in the origination and pro-duction processes, but there are no critical problemswhich cannot be resolved with experience and byadjusting the processes.

■ Banknote printing productivity when using a polymersubstrate is equivalent to (or even better than, in thecase of some processes) that of paper.

■ The wrapping of polymer banknote bundles is a very

Substrates CodeFibre

compositionAnti-soiling treat-

mentVarnish coating

Averagelifetime

Conventionalpaper

A0 100% cotton No No ---

A1 100% cotton No Yes (1) 29%

A2 100% cotton No Yes (2) 12%

High durability

D0cotton + artificial

fibresYes No 10%

E0 100% cotton Yes No 33%

F0 100% cotton Yes No 38%

G0cotton + artificial

fibresYes No 5%

H0 100% cotton Yes No 34%

E1 100% cotton Yes Yes (1) 69%

F1 100% cotton Yes Yes (1) 87%

H1 100% cotton Yes Yes (1) 86%

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

1 2 3 4 5 6 7 8 9 10

Results of control substrate

Results of substrate under study

Degradation curve of control substrate

90% confidence interval

Degradation curve of substrate under study

90% confidence interval

Appearance at withdrawal

Ap

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un

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Number of deterioration cycles in the laboratory

Paper substrates analysed and results obtained

The features of the high-durability paper types analysed by the Banco deMéxico, and the results obtained relative to the expected increase in theaverage life of each banknote, are shown in Table 2.

Table 2. Final results of the tests with various paper types

(1) Post-varnishing of banknote with varnish from supplier A(2) Post-varnishing of banknote with varnish from supplier B

The conclusions obtained from the laboratory tests were as follows:

■ Varnishing the substrate increases average banknote lifetime.

■ Pre-varnishing increases banknote lifetime by between 10% and 38%.

■ Post-varnishing increases banknote lifetime by between 12% and 29%.

■ Dual varnishing (pre + post varnishing) increases banknote lifetime bybetween 69% and 86%.

important issue and the use of sharp-edged tools must be avoided whenopening the bundles as a small scratch in a polymer banknote can resultin its tearing completely.

■ In laboratory tests, intaglio printing polymer banknotes with colour inkgives a similar result than with transparent ink.

High durability paper compared to traditional paper

■ IThe high durability substrate comprising an anti-soiling treatment appliedto conventional cotton paper (pre-varnishing) complemented with a

(continued on page 27)


The Bank of Thailand’s experience with high durability banknotes


A detailed nationwide opinion survey carried out in parallel showed the pref-erence for polymer banknotes among the general public, cashiers, profes-sional cash handlers and retail banks to be low. It was observed that, inpractice, the new banknotes’ resistance to wear and tear was reduced bythe fact that the intaglio printing came off of the polymer as a result of therubbing and folding the banknotes suffered while in circulation. Moreover,it was found that many banknotes were deformed by folding and shrankwhen exposed to high temperatures. These two factors were the main rea-sons for banknotes becoming unfit for circulation. Once folded or shrunk,polymer banknotes could not be restored to their original shape, renderingthem unfit for automated processing.

As an alternative to the polymer substrate, paper manufacturers developeda new type of durable banknote based on 100% cotton paper incorporat-ing a varnish and anti-soiling materials. This substrate looked very promis-ing, as it offered clear advantages over the polymer substrate. Its look andfeel was the same as that of a banknote manufactured from conventionalpaper, and therefore, the public’s perception and acceptance was notaffected. Moreover, it retained all the security features of banknotes pro-duced with standard paper, without being subject to restrictions on fold-ing and heat exposure. Laboratory simulation tests also showed banknotesprinted on durable paper to have enhanced soiling resistance. Moreover,no special equipment was needed for their manufacture and they producedbetter quality results from intaglio printing.

Developing a soiling resistance test

In Thailand, soiling is the main cause of banknotes being sorted to unfit.Therefore, the search for a new banknote substrate has focused on thosealternatives which are best able to repel soiling while the banknote is in use.Making a precise estimate of a banknote’s lifetime in circulation is extreme-ly difficult, and it can take years to record and evaluate the real circulatinglifetime data for different types of durable banknote. This being the case, alaboratory test could provide useful results. Against this backdrop, the Bankof Thailand’s Printing Works developed a soiling resistance test to simulate thesoiling of banknotes in circulation under experimental conditions in its labora-tory as a means of determining their relative levels of soiling resistance. Amixture of artificial soiling agents was prepared in the form of clay balls stainedwith soy oil, olive oil and ethanol. The balls were loaded in a container togeth-er with the banknotes and it was rotated so that the balls acted like the fin-gers of a hand touching and staining the banknotes. This procedure has beendeveloped and standardised to make it equivalent to the real conditions ofbanknotes in circulation. The results of this test have made it possible toevaluate the performance of various different high durability substrates.

Circulation test on durable banknotes

Following our research into durable paper substrates, we concluded thatit offered better soiling resistance than standard paper. However, ink adher-

The Bank of Thailand’sexperience with high durability banknotes

Sopee Sa-nguandekul Bank of Thailand

The search for high-durability banknotes

The Bank of Thailand investigated several durable substrate technologiesand reached the conclusion that polymer would be the most appropriatesolution for its banknotes, in view of its greater physical strength. In 1996 itissued two banknotes using the polymer substrate for the first time. Thesewere a commemorative 500 baht and 50 baht banknote, and they werewell received by the public. Subsequently, a non-commemorative 50 bahtpolymer banknote was issued in order to better estimate the performanceof the new substrate throughout its lifetime in circulation. Since 1998 poly-mer banknotes have been printed at the Bank of Thailand’s printing worksand 486 million 50 baht banknotes have been put into circulation.


The Thai issuing authority has put inplace a policy aimed at guaranteeingthat the banknotes in the public’s handsare in good condition. Injecting morenew banknotes into circulation andwithdrawing soiled notes is a simpleway of achieving this objective, butimplementing this approach is veryexpensive. Banknote issue and man-agement need to be guided by cost-effectiveness, but the issuing authorityhas to focus on overall costs, includingthe cost of banknote issue, handlingand procurement. In order to keepcosts down, the Bank of Thailand hasreduced demand for new banknotes byextending their lifetime by issuing high-durability banknotes. It is crucial thatthe issuing authority have the opportun-ity to experiment with new types ofbanknote substrate which may extendtheir lifetime.


The Bank of Thailand’s experience with high durability banknotes


Properties Standard paper Durable paper

Weight (g/m2) 83 85

Thickness (mm) 108 114

Crumple porosity, 8X (ml/min) Max. 190 Max. 120

Washing resistancea (index) Min. 3 Min. 3

Crumpling resistanceb (index) 4-5 4-5

Soiling resistancec (index)• Banknote paper

(30 minutes programme time)• Printed paper

(30 minutes programme time)• Printed paper

(60 minutes programme time)

2/3

2/3 – 3

2/3

3

3/4 – 4

3 – 3/4

note strength. Consequently, the Bank of Thailand decided to raise thelevel of soiling resistance and some physical properties with a potentialimpact on banknote lifetime.

The next step

Substrate suppliers continue to develop new types of durable substrateusing various technologies, such as high strength fibres, banknote varn-ishing, laminar substrates with a polymer layer, etc. The search for a bet-ter durable substrate solution is an unending road. Bearing in mind thatthe high demand for circulating banknotes is influenced by banknote dur-ability, the Bank of Thailand’s research into durable substrate is ongoingin order to achieve greater overall efficiency in both manufacture andissue.

ence was poorer, because the substrate was designed not to attract dirt.The new ink formulations have been developed to improve ink adherenceproperties.

Physical properties of durable paper compared with standard papercon el papel estándar

Obverse of banknotes after soiling resistance tests: durable paper (top) and standard paper (bottom) /Bank of Thailand

Notes: a) and b) index of 1-5 in accordance with standards used by the Bank of ThailandPrinting Works, where 5 indicates excellent resistance, 3 is acceptable and 1 isvery low.c) Index of 1-5 according to the grey scale to measure soiling, ISO 105-A03, where5 indicates excellent resistance, 3 is acceptable and 1 is very low.

In 1999, the Bank of Thailand decided to run a controlled circulation testwith this type of durable substrate by issuing 40 million 20 baht banknotesprinted on the selected durable substrate and an equal number of bank-notes printed on standard paper. These banknotes were put into circula-tion in the North East of Thailand, the region where banknotes suffer theharshest circulation conditions. Given that the two types of banknoteslooked identical, it was possible to run the durability study without chang-ing the usual banknote sorting processes, simply by monitoring monthlywithdrawals of banknotes from circulation and the percentage of unfitbanknotes. The upshot was that the durable-substrate banknotes werefound to last an average of 1.7 times longer than those printed on stan-dard paper. After two years in circulation, it was concluded that the aver-age lifetime of durable banknotes was between 70 and 80% longer thanthe standard equivalent. The cost increment due to use of the substraterather than conventional paper was 30%.

Transition to high durability banknotes

The positive results obtained from the circulation test with 50 baht bank-note led the Bank of Thailand to undertake, a step-by-step transition tothe durable substrate for all its banknote denominations. This beganwith the issue of 500 baht banknotes in 2001, followed by the 20 bahtbanknote in 2003, 100 baht in 2004 and the 1,000 baht banknote in2005.

To accredit paper suppliers’ ability to manufacture the specified type ofdurable paper, it was necessary to define the standard for soiling resist-ance in line with the method developed by the Central Bank’s PrintingWorks. As some types of durable paper can be longer-lasting than othersunder harsh circulation conditions, research was conducted to improvethe soiling resistance and physical properties which could influence bank-


Obverse of 500 baht commemorative banknote / Bank of Thailand



In recent years, in order to improve the strength of conventional paper andoffer the market more durable substrates, a number of leading banknotemanufacturers have developed types of cotton-based paper with certainspecial features. In order to evaluate the durability characteristics of theseproducts, standardised laboratory tests were performed to compare themwith the paper used for banknotes in the Republic of Argentina. Theseincluded tests of mechanical strength, print durability, and soiling resist-ance.

The samples analysed presented the following basic characteristics:

Tests on long-life paperAna María González and Diego Schweckandt Banco Central de la República Argentina1

Tests on long-life paper


Published reports on banknotes andaccrued experience show the most com-mon reason why banknotes are withdrawnfrom circulation to be soiling. Other reasonsincluded physical damage, scribbles, wearand tear, and the loss of effectiveness ofcertain security features.

Main findings

Table 1. Characteristics of the samples

Tests performed

Mechanical strength. The mechanical tests performed on banknote paperare intended to reproduce in the laboratory some of the strains that bank-notes are subjected to during their lifetime in circulation. The tests exam-ine the paper’s tensile strength and resistance to folding and tearing.

Soiling resistance. In order to simulate the treatment of banknotes in cir-culation, samples were crumpled in an NBS Crumpling Device. Subsequenttests then examined banknote porosity after crumpling, soiling (both usinga unit known as the TURBULA and by directly applying a variety of sub-stances), and water absorption (Cobb method).

Print durability. Printed paper samples were subjected to tests of theirresistance to chemicals and crumpling.

Note: Due to the differences in the weights and specifications of the different papertypes, the results are not strictly comparable.

Final remarks

■ Paper types containing synthetic fibres presented better mechanical strengthin tear and double-fold tests.

■ Special paper types performed better in soiling tests, with an increase in soil-ing resistance of between 15 % and 20 %.

■ The results of print durability tests were practically the same for all papertypes, or slightly better in the case of special paper types.

Samples A B C D E Current paper

Type Paper with anti-soiling treatment Conventional

Weight 90.0 87.0 93.0 97.0 91.0 90.0

Fibre composition

100 % cotton80 % cotton

20 % polyester100% cotton

80% cotton 20 % polyester

100 % cotton 100 % cotton

1. This article does not aim to present the definitive opinions or points of view of the Banco Cen-tral de la República Argentina on the subject of the study.

Table 2. Main results of mechanical resistance tests

Resistance A B C D ECurrent paper

(*)

Tearing (gf)1 84 123 89 153 91 89

Dry traction(kN)*

6.9 6.3 7.0 6.5 6.2 6.8

Moist traction (kN)

3.2 2.8 5.3 5.2 2.8 2.7

Double folding

4,268 5,411 2,081 7,211 2,684 5,274

1. gf: grams force 2. KN: Kilonewton / metre

Table 4. Results of print crumpling resistance and washing tests

Sample Uncrumpled (*) Crumpled (*)

A 24.8 22.1

B 26.1 24.3

C 24.9 24.5

D 24.1 25.4

E 25.1 25.8

Current paper 30.5 28.7

Table 3. Average values from the tests performed

PAPER

CRUMPLING(4: excellent; 1: poor) WASHING

(5: excellent;1: poor)DRY MOIST

A 4 4 3

B 3.5 4 2

C 3 4 4

D 3.5 4 5

E 4 4 1

Current paper 4 3.5 2

(*) Difference in whiteness (before and after treatment)



8th International Course on Cash Management

CIGE

last four Courses for comparison. The 8th CIGE will be held in Lima, Peru, from2 to 6 May 2011, under the auspices of the Banco Central de Reserva delPerú as host for the event. The theory and practical sessions comprising theCourse will cover all phases of the cash cycle, looking at all the activities of acentral bank, and workshops and visits to cash centres are planned. As onprevious occasions, the organisers have made considerable effort to ensurethe Course maintains a high professional standard and that teaching is of thebest academic quality. All central banks in Latin America, Spain and Portugalhave been invited to send a participant. For more information, please contact:

8th International Course on Cash ManagementThe International Course on Cash Management (CIGE) was created by theBanco de España in conjunction with the Banco de México and the BancoCentral de la República Argentina, and its first edition took place in 2004, inMadrid. Since then, each year the CIGE has been held at the headquarters ofone of the founding central banks (Banco de España, Banco de México andBanco Central de la República Argentina) or at the headquarters of a centralbank in Latin America that has expressed an interest in hosting it. So far, thesehave included the Banco de la República de Colombia, the Banco de Portu-gal and the Banco Central do Brasil. The table below gives an overview of the

Edition4th CIGE

Banco de la República10-14 September 2007

5th CIGEBanco de Portugal

26-30 May 2008

6th CIGEBanco de España

1-5 June 2009

7th CIGEBanco Central do Brasil

17-21 May 2010

Venue Bogotá Lisbon Cercedilla (Madrid) Rio de Janeiro

Countries participating 18 12 18 18

No. instructors 16 19 24 16

No. lectures 14 14 20 20

No. round tables 4 6 4 3

Table comparing recent Courses

Banco Central de Reserva del PerúJulia Vivanco – Events managerE-mail: [email protected].: +51 1 613 2806Fax: +51 1 613 2502

CIGE Technical SecretariatCash and Issue Department, Banco de EspañaE-mail: [email protected].: +34 91 338 6310 / 7091Fax: +34 91 338 6887

Periodical publications on cashEditorial Committee of BILLETARIA Banco de España

Annual international conferences and meetings on cash offer interestinglectures, studies and other contributions and are an extremely useful sourceof knowledge for professionals in the banknote and coin field. However,specialist publications on the subject are scarcer and often hard to find.This note aims to give an overview of some of the specialist periodical pub-lications in our field available in Europe in print format. We should, howev-er, make clear that this list does not aim to be an exhaustive catalogue –alengthy task beyond the scope of his work. We have therefore not includ-ed publications only in circulation outside Europe’s borders, or cataloguesof banknotes and coins, advertising brochures or web-based publications,nor have we covered the numerous documents and papers by centralbanks that are not published periodically.

The accompanying table summarises the main characteristics of the pub-lications mentioned. These fall into two groups: periodicals offering gener-al information, and newsletters published by associations or firms in thecurrency industry. All these publications can be looked up on their pub-lishers’ websites. The more general periodicals are mostly produced bypublic-sector organisations. The remainder, published by private firms, tendto focus primarily on the products their sponsors are promoting and mar-keting, and are distributed free of charge to their customers and any otherinterested parties.

Generalist publications

1. From Central Banks: free of charge and without advertising

BILLETARIA focuses on cash management and is prepared by the Cashand Issue Department of the Banco de España. It is produced by centralbanks for central banks. It is characterised by its offering opinion articlesby leading Central Bank professionals and by firms involved one or otherof the phases of the cash cycle. It also presents interviews with key figuresin the cash management world. There is a particular focus on Latin Ameri-can countries and the journal reports on the International Course on CashManagement (CIGE), which was the initial impetus for the creation of BILLETARIA, and which is run each year by the Banco de España in collab-oration with Latin American central banks. The journal is published twice ayear in Spanish and English.

Boletim Notas e Moedas is a newsletter from the Banco de Portugal’sNational Counterfeit Centre. It basically comprises institutional informationon cash management and the Bank’s communications policy. It also pres-ents a compilation of the most significant cash-related statistics in Portu-gal. It therefore publishes data on banknote and coin circulation, euro coun-terfeits detected in Portugal, euro-relevant legislation and includes a world-

33Periodical publications on cash

Miscellaneous



Periodical publications on cash

Miscellaneous

wide numismatics section. It also reports on training courses and mater-ials existing to help users recognise euro banknotes and coins. The con-tributors are almost exclusively from the Banco de Portugal, although thereare occasional exceptions. The journal is produced every four months andis published in Portuguese.

2. By other publishers: not free of charge and include advertising by their sponsors and others

Banknotes of the world. News bulletin. This is a publication from theRussian firm Intercrim-Press. The publisher was created on the initiative ofthe Russian Federation’s Interior Ministry in December 1999 in order to pro-vide information about counterfeits in circulation in Russia and in other coun-tries of the former Russian Federation. As well as the monthly publication itproduces an annual catalogue of banknotes in circulation around the world.The newsletter specialises in banknote security features and counterfeit-ing, with images of new banknotes put into circulation worldwide. Eachissue of the journal generally includes an article on new technology devel-opments with banknote applications. Although the publisher produces mostarticles in-house, articles by experts from the banknote world are also some-

sorting of banknotes. Generally speaking, they are published once or twicea year. The publications in this section include Banconota, Exchange, Inter-act, IPCA BULLETIN and Report, and The G&D Magazine.

2. Publications devoted to security

These are specialist journals or brochures on security features for valuabledocuments, thus covering a broader spectrum than solely banknotes. Inthe currency field, the bulk of content concerns anti-counterfeiting meas-ures, the technology available and new developments underway regardingbanknote security features. Articles are usually written by in-house authors,and are unsigned. All these periodicals are published between two and fourtimes a year. This group includes CONFIRMA SEGURIDAD DOCUMEN-TAL, INFOSECURA and Security Update.

We hope the information compiled here will be of interest to BILLETARIA’sreaders. The listed publications can be accessed via the relevant publish-er’s website in each case. And, to finish, we would like to add that we hopeto see the number of publications increase in the future with a view to fos-tering an increasingly fruitful exchange of experience and know-howbetween cash professionals around the world.

Looking at the red coat / Y. Barrera

times also published. Published monthly inEnglish and Russian.

Currency news, from the British publisherReconnaissance International Publishers andConsultants, to accompany the Currency Con-ference, an international forum which bringstogether banknote experts from around theworld every 18 months. It specialises in inter-views, news and events, reporting on newdevelopments, and occasionally includes opin-ion and analysis pieces on the currency world.Articles are not usually signed by their authors,except those taking the form of an interview.Published monthly.

Watermark is a journal created by the Ministryof Finance of the Russian Federation, the Cen-tral Bank of Russia and the manufacturer Goz-nak. The editorial board includes experts fromcentral banks in Russia, Byelorussia, Ukraine,Kazakhstan, Armenia, Kirghizstan and thesecurity-document industry. The publisher isthe organiser of the Watermark Conference,an international meeting dedicated to security-document printing. The content of the journalincludes interviews, technical articles, new fea-tures and a list with photographs of the mainbanknote security features. It sometimes alsopublishes opinion articles by experts in thefield. It is published twice a year, in April andOctober.

Specialised publications

1. Devoted to banknote production andsorting

This heading includes those publications devot-ed to banknote design, substrates, printing, andmanufacture and equipment for cash handlingand sorting. The range of topics also sometimesincludes articles on banknote distribution andcustody. These journals and brochures reporton trends and new developments, as well asthe technology available for the production and



35Periodical publications on cash

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Specialist publicationsGeneralist Publications

SecurityBanknote production and sortingOther publishersCentral Banks



In December 2010 Regulation (EU) no. 1210/2010, of the European Par-liament and of the Council concerning authentication of euro coinsand handling of euro coins unfit for circulation was passed. This newEuropean regulation establishes the procedures and standards credit insti-tutions and other economic agents are required to comply with in order toguarantee the authenticity of coins received from the public which theyintend to put back into circulation. These requirements were imposed byRegulation (EU) no. 1338/2001 of 28 June 2001, laying down measuresnecessary for the protection of the euro against counterfeiting. The textalso defines a series of obligations on Member States concerning cooper-ation, control and supervision.

The new Regulation supersedes Commission Recommendation2005/504/EC, of 27 May 2005, concerning authentication of euro coinsand handling of euro coins unfit for circulation, which established therecommended practices for the authentication of euro coins and the pro-cessing of euro coins unfit for circulation. The new Regulation will comeinto force on 1 January 2012.

To summarise, the main obligations established for institutions are: 1)authentication of all the coins they receive and intend to put back into cir-culation using coin processing machines authorised by the European Com-mission or by personnel trained in accordance with modalities defined byMember States; 2) all euro coins unfit for circulation and suspected coun-terfeit coins detected during authentication are to be submitted to the des-ignated national authority, and 3) information on the euro coin authentica-tion activities conducted is to be sent periodically.

Central banking news

Miscellaneous

Since January 2011, euro coins and banknotes have been in circulation inEstonia, bringing the number of countries in which the euro is legal tenderup to seventeen. The changeover went smoothly, thanks to ample stocksof banknotes and coins in shops and ATMs on the launch date, as eurobanknotes and coins had been frontloaded and sub-frontloaded to financialinstitutions and retailers beforehand. Estonian kroons continued to circu-late in parallel up until 14 January, which was the start for the period during

New Brazilian 500 and 100 real banknotes

Central banking news

The new 500 and 100 real banknotes, in the second generation of reais,came into circulation on 13 December 2010. It is envisaged that the new20 and 10 real banknotes will be launched in 2011, and the 5 and 2 real banknotes in 2012. The planned second generation of reais bank-notes aims to modernise the real banknote series using sophisticatedgraphics to raise the bar significantly for counterfeiters. The new bank-notes have been designed with a different size for each denomination andincorporate tactile marks to facilitate their identification by the visuallyimpaired.

The new banknote design retains the image of the Efígie da República sym-bolising the Brazilian republic on the obverse, and has images of Brazilianfauna on the reverse.

Estonia joins the Euro

Obverse of the new banknotes / Banco Central do Brasil

which the public can exchange their Estonian kroons at financial institu-tions free of charge. This window closes at the end of the year, althoughthe old currency can be changed at the Estonian Central Bank indefinitely.An advertising campaign, including a series of television commercials, wasrun to inform and educate the public and professional cashiers about thenew currency, thus enabling the message to reach a large percentage ofthe population.

New European Regulation on coins

The new banknotes also include security features that are readily identifi-able by the public, including the holographic foil strip and latent image. Thetwo series of banknotes will coexist in circulation until the new banknoteshave replaced the existing ones. Users will not need to exchange their oldbanknotes at financial institutions.

The Regulation also defines new obligations for Member States, namely:1) they are to provide manufacturers with the possibility of performing detec-tion tests on their machines, and 2) they are to make annual on site checksat institutions with a view to verifying the proper functioning of the pro-cessing machines used and to confirm the existence of a written policy pro-viding instructions to ensure the obligations are complied with.

This new regulation on coins, together with the European Central BankDecision (ECB/2010/14) of 16 September 2010, on the authenticityand fitness checking and recirculation of euro banknotes, completesthe common guidelines implementing Regulation 1338/2001, aimed atensuring the authenticity and fitness of euro banknotes and coins.



37Events

Miscellaneous

Events

On 10 March 2011 the secondmeeting of the group of Europeancentral banks using GS1 standardsfor cash activities was held. Themeeting was organised and hostedby the Banco de España’s Cashand Issue Department in conjunc-tion with the Central Banks of Ger-many, France and Italy, which havealso adopted these standards. Rep-resentatives of the business and ITareas of various Eurosystem Cen-tral Banks considering using GS1were also present, as were officialsfrom the European Central Bankand various European GS1 organi-

From 20 to 23 March 2011, the city ofBarcelona hosted the second RegionalConference of ICCOS EMEA (Europe,Middle East and Africa). This conferenceis a forum for debate on methods andpractices to increase efficiency in the cashcycle. Representatives of the various sec-tors concerned took part in the event,along with delegates from the CentralBanks of the United Kingdom, Germany,the Netherlands, Austria, Belgium, Spainand the European Central Bank. The top-

Participants at the ICCOS EMEA meeting in Barcelona / ICCOS EMEA

Central bank GS1 standards users meet in Madrid

Attendees of the GS1 meeting in Madrid / BILLETARIA

Germany changes its coin handling practices

Standardised coin container / Deutsche Bundesbank

The Deutsche Bundesbank has modified its provisions for the acceptance and withdrawal of coins. Thechange is included in the context of the measures implemented to standardise the packing of coins in rolls,and requires that coins be authenticated before they are returned to circulation. Since January 2011 coindeposits and withdrawals are only permitted in the form of complete coin containers. These coin contain-ers are specific to each denomination and have a capacity which varies from 200 to 500 packs of ten stan-dard rolls. To allow the market to adjust to the new requirements, for a charge, part-filled containers willalso be accepted during a transitional period.

ics covered included the cash manage-ment and the cost of cash, the regulationon cross-border cash movements, therecirculation of banknotes and coins, train-ing, and anti-counterfeiting efforts. Repre-sentatives of credit institutions, cash intransit firms, the vending machine indus-try, and commercial associations also tookpart. Participants were welcomed with anaddress by J. Darío Negueruela, Directorof the Cash and Issue Department at theBanco de España.

sations. Issues concerning theimplementation of these standardsin national cash cycles were cover-ed, and the standards will undoubt-edly contribute to raising the effi-ciency of cash distribution. The con-clusions reached at the meetingincluded the organisers’ declarationof their intention to promote the useof standards at all stages of thecash cycle in their respective coun-tries, and facilitate their adoption byother countries outside the Eurosys-tem that have expressed an inter-est.

ICCOS EMEA meeting inSpain


Security features integrated in banknote paper

Miscellaneous

1. Multi-tone watermark This consists of an image that is visi-ble when the banknote is held upagainst the light, which is created dur-ing the manufacturing process suchthat it is an integral part of the paper.It is made by varying the thickness ofthe paper to produce differingdegrees of opacity, resulting in thelighter and darker areas which makeup the image.

2. Electrotype watermark This is an image that is visible whenthe banknote is held up against thelight. It is created during the manu-facturing process using a filamentwhich takes the shape of a number orletter.

3. Duotone watermarkThis is a type of watermark in whichtwo clearly different shades can bedistinguished when the banknote isheld up against the light. These covera relatively large area, similar to a bin-ary code or bar code. This type ofwatermark is produced during papermanufacture using a mould to vary thethickness of the paper so as to pro-duce the visual effect.

4. Embedded security thread This is a thin strip of plastic inserted inthe paper. It is usually 1-2 mm wide,and 30-40 microns thick. It is oftenhas microtext printed on it and maybe fluorescent. It may also have elec-trical or magnetic properties to enableit to be read by banknote handlingequipment.

5. Windowed threadThis is a slightly wider strip than theembedded security thread (3-4 mm),which weaves in and out of the paper.The areas not covered by the paperare visible and may contain an optic-ally variable feature, such as an inkwhich changes colour when the bank-note is tilted. Inserting a windowedthread in the paper is associated withthe production of a watermark, whichmay act as a further security featurein its own right when the banknote isobserved against the light.

6. Thread with floating images This is a windowed thread which isinserted into the paper using standardtechniques. The floating image effectis produced by micro-lenses incorpor-ated in the thread. Changing the angleat which the micro-lenses are viewedby tilting the thread produces theimpression that the images are float-ing.

WATERMARKS SECURITY THREADS


Banco de España Cash and Issue Department

As issue 9 of BILLETARIA is devoted to paper substrates, this section presents the mainovert banknote security features that can typically be included in them. The guiding prin-ciple has been to include those features generally supplied by the paper industry alreadyincorporated in the substrate. However, we have also included some elements, such asthreads and holographic foils, that are security features in their own right and independ-ent of the substrate used, thus meriting a section of their own. The features describedhave been classified by common functional traits retailers or the public can detect by eyeor using simple equipment. The list combines security features that have traditionallybeen included among those incorporated in the paper of the banknote and those latestgeneration features that are starting to appear in the most recent banknote issues aroundthe world.




Miscellaneous

7. Hologram strip applied directlyto the substrateThis is a metal strip running across thewhole width of the banknote on whichthere are holographic motifs, diffrac-tive zones and optically variable fea-tures that change when the banknoteis tilted. This is normally applied withhorizontal registration, although thelatest trend is towards its vertical reg-istration to ensure that the motifs areat the same distance from the topedge in all banknotes.

8. Transparent security window This is a transparent area of the bank-note obtained by cutting away part ofthe substrate and into which elementswith various optical effects areincorporated. These may includeembossed plastic laminates, liquidcrystals, or an optically variable fea-ture. The window can have whatevermorphology is required in order tomatch the design of the optical elem-ent to be applied to it.

9. Micro-perforationsThis is an image formed by countlessminute holes in the paper which is vis-ible when held up against the light.The perforations are made using alaser.

10. Crisp soundThe characteristic sound made whena banknote is waved in the air. Cottonpaper gives the banknote its crispsound and gives banknotes theircharacteristic stiffness and feel.

11. Raised embedded featuresThese are particles embedded in thepaper which contain components thatexpand them and create a high relieftactile surface. The particles areinserted attached to a strip which islaid between two layers of paper dur-ing manufacture and which can beused as a vehicle for other securityfeatures, such as fluorescence. Thereis no limit on the shape of the designsthese raised embedded elementsallow for.

12. Tinted paperThe application of inks or pigments tothe paper so that, in conjunction withthe other paper additives, the finishedproduct takes on a specific hue. Thecolour of the paper is usually thesame tone as the dominant colour ofthe images on the banknote itself.Normally pale tones are used, whichare difficult to reproducing using elec-tronic copying techniques.

13. Absence of optical brightenersThe paper substrate used for bank-notes does not respond to ultravioletlight, which differentiates it from mostcommercially available paper types.

14. Fluorescent fibresThis features comprises fluorescentfibre fragments, normally of plastic,embedded randomly in the substratematrix. These fibres fluoresce underultraviolet light. They may respond inseveral colours, usually green-yellow,red and blue. They are normallybetween 3 and 6 mm long.

15. PlanchettesThese are tiny circular or polygonalelements, usually made of paper orplastic, which are scattered randomlyacross the surface of the paper sub-strate. They fluoresce when the paperis examined under ultraviolet light.They usually have a yellowish-greenresponse, but as with fluorescentfibres, other colours are possible (seeelement 14). They usually have dimen-sions of a few millimetres.

16. Multicolour fibresThese are coloured fibre fragments,normally made of paper or plastic,embedded randomly in the papersubstrate. Each fibre shows two ormore colours, usually yellow, red andgreen, when examined under ultra-violet light.

PAPER COLOUR


OPTICALLY VARIABLE FEATURES

TACTILE FEATURES

ULTRAVIOLET PROPERTIES


World map by Domingos Teixeira, 1573.Bibliothèque nationale de France. Paris.

BIL

LETARIA

BILLETARIA

BILLETARIAApril 2011

Published byBanco de España / Cash and Issue Departmentwww.bde.es

Editorial CommitteeJ. Darío NegueruelaManuel GalánWolfgang SöffnerLuis Fiore

Editorial Staff María Luisa Leyva Víctor Andrés Fernando León María Eulalia Andonegui José Moreno

Special Advisors Bernardo Calvo Hélder Rosalino

Secretariat Cash and Issue Department, Banco de EspañaAlcalá, 522 28027 Madrid Tel.: +34 91 338 6310 Fax: +34 91 338 6887

The opinions expressed in the articles published here arethose of their authors and do not necessary reflect thoseof their respective employers or the Banco de España,unless otherwise stated.

Reproduction of the content of BILLETARIA, in wholeor in part, is permitted, provided the source isacknowledged.

For subscriptions and contributions, please contact:[email protected]

© Banco de EspañaLegal deposit: M-45.124-2010Printed in Spain, by Artes Gráficas Palermo, S. L.

YEAR V ISSUE 9 APRIL 2011


INTERNATIONAL REVIEW ON CASH MANAGEMENT · BILLETARIA no. 9 April 2011 3 Surga León España...

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Transcript of INTERNATIONAL REVIEW ON CASH MANAGEMENT · BILLETARIA no. 9 April 2011 3 Surga León España...